Shares firmer but dollar soft before Fed

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NEW YORK/LONDON (Reuters) - The euro hit a three-week high and global shares jumped on Wednesday, lifted by better-than-expected earnings from tech heavyweight Apple Inc, and signs of improved sentiment in the troubled debt markets of the euro zone.

The dollar eased to three-week lows against a range of currencies .DXY before a key statement on U.S. monetary policy later in the day by the Federal Reserve.

Markets expect the U.S. central bank to restate its intention to keep benchmark interest rates near zero throughout 2014 and possibly hint at more easing at its latest meeting.

U.S. equity markets opened higher, with the Nasdaq climbing more than 2.0 percent and the broad S&P 500 index gaining more than 1 percent.

Apple (AAPL.O) rose 10.1 percent to $617.12 after reporting quarterly profit that almost doubled on strong iPhone sales.

Apple's forecast-beating results removed a weeks-old market overhang and lifted optimism in a corporate earnings season that is already far outstripping expectations.

"It has been a long time since I've seen one earnings report be so meaningful for the market," said Rick Meckler, president of hedge fund LibertyView Capital Management in Jersey City, New Jersey, of Apple's earnings.

The Dow Jones industrial average .DJI was up 90.07 points, or 0.69 percent, at 13,091.63. The Standard & Poor's 500 Index .SPX was up 16.72 points, or 1.22 percent, at 1,388.69. The Nasdaq Composite Index .IXIC was up 61.61 points, or 2.08 percent, at 3,023.21.

MSCI's world equity index .MIWD00000PUS was up 1.1 percent at 326.68.

Weaker economic data failed to halt gains in the FTSE Eurofirst .FTEU3 index of top European shares, which rose 1.2 percent to 1044.81.

New data showing Britain's $2.4 trillion economy had slipped back into recession served as a reminder of the wider impact of the euro zone crisis.

The euro was up 0.15 percent at $1.3214, while the U.S. dollar was down against a basket of major trading-partner currencies. The dollar index .DXY down 0.2 percent at 79.065.

U.S. Treasuries debt prices fell as investors reduced their bond exposure ahead of a $35 billion auction of new five-year supply and to hedge against any surprises from the Fed.

The benchmark 10-year U.S. Treasury note was down 7/32 in price to yield 2.0 percent.

Brent crude oil wavered on news that Iran may halt its nuclear program expansion in order to avert EU sanctions, eroding some of the risk premium.

Brent was down 7 cents to $118.09 a barrel. U.S. light sweet crude oil rose 29 cents to $103.84 per barrel.

(Additional reporting by Ed Krudy in New York; Writing by Herbert Lash; Editing by James Dalgleish)

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