GLOBAL MARKETS-World stocks hit 12-month high on earnings

* JPMorgan earning results beat forecasts, boost stocks

* World stocks hit 12-month high

* Dollar hits 14-month low vs euro, basket

* Gold hits record, oil at year's highs (Updates with U.S. markets, changes byline, dateline; previous London)

By Manuela Badawy

NEW YORK, Oct 14 (Reuters) - Strong quarterly profits from major U.S. bank JPMorgan Chase pushed world stocks to their highest level in a year on Wednesday, boosting market optimism of an economic recovery that sent the U.S. dollar to a 14-month low against major currencies.

Gold prices edged back after hitting record highs earlier in the session, supported by persistent weakness in the safe-haven dollar and strength in oil prices, which rose to a 2009 high above $75 a barrel .

JPMorgan quarterly profit surged to beat forecasts and spur optimism about the rebound in top Wall Street banks. The bank has remained among the healthiest U.S. lenders throughout the financial crisis. [ID:nN13183184]

The Dow Jones industrial average <.DJI> pushed over the psychologically important 10,000-level for the first time since October 2008.

The MSCI all-country world stock index <.MIWD00000PUS> rose 1.7 percent to a new 12-month high. The index is up 28 percent this year, and more than 70 percent since hitting a six-year low in March.

"On the back of a solid start to earnings season and strong trade and loan growth releases from China, investors are widely seeking risk today," said Camilla Sutton, currency strategist at Scotia Capital in Toronto in a note to clients. "This has helped push equities and commodities higher and the US dollar and bond prices lower."

The buoyant bank results followed another forecast-beating earnings from Intel Corp and upbeat Chinese trade data. [ID:nPEK367690]

Those factors helped brighten the economic outlook and encouraged investors to move into perceived riskier and higher-yielding currencies.

Risk assets were also fueled by expectations interest rates in major economies would stay at rock-bottom levels for some time, providing cheap funding for investors.

The Federal Reserve's minutes from its meeting of Sept. 22-23 will be released at 2 p.m. (EDT) with investors looking for signs of the Fed's thinking on so-called exit strategies from the monetary easing put in place to alleviate the credit crisis and economic recession.

SAFE-HAVEN RETREAT

The U.S. dollar was down against a basket of six other currencies, with the dollar index <.DXY> down 0.59 percent at 75.529, hitting its lowest since August 2008.

The dollar has fallen as investors bet on low U.S. interest rates, with rising commodities denting its risk-free appeal.

The euro was up 0.36 percent at $1.4910 after rising to its highest level since August 2008. Against the Japanese yen, the dollar was down 0.51 percent at 89.23 yen from a previous session close of 89.700.

U.S. government bond prices fell on the equity market strength and government data showing improvement in retail sales, diminishing the attractiveness of safe-haven U.S. debt.

The benchmark 10-year U.S. Treasury note fell 13/32 its yield rising to 3.3857 percent.

The U.S. government report showed total sales at retailers fell by a less-than-expected 1.5 percent in September. [ID:nN14236340]

European shares also rose to their highest in a year at 1,017.75, up 2.2 percent on the day, while MSCI's emerging market equities index reached its highest since mid-August 2008 above 968.

But Thailand's benchmark stock index slipped more than four percent to two-week lows as domestic financial markets tumbled on concerns over the health of the country's 81-year-old king, traders said.

(Additional reporting by Nick Olivari, Edward Krudy in New York, Tamawa Desai, Jan Harvey in London; Editing by Andrew Hay)