* Global stocks edge higher on prospect for solid earnings
* Euro falls sharply on persistent Greece debt concerns
* Oil slips under $86, dollar tempers high China growth
(Updates with close of European markets)
By Herbert Lash
NEW YORK, April 15 (Reuters) - The euro fell broadly on
Thursday as worries about Greece's debt woes resurfaced while
strength in the U.S. dollar kept a lid on commodity prices and
global stocks edged higher on solid corporate earnings.
Late in the day Greece asked for official talks with
European authorities and the International Monetary Fund, a
step that could lead to the release of billions of euros from a
standby aid package agreed on over this past weekend.
The yield spread of 10-year Greek government bonds against
German Bunds <GR10YT=TWEB><DE10YT=TWEB> closed slightly wider
at 413 basis points, but was much tighter than the session's
436 basis point high.
The euro <EUR=> was on track for its biggest one-day fall
against the dollar in three weeks, down 0.78 percent at
$1.3545.
"The biggest concern for the market is the Greeks don't
realize how difficult it is to fund in the market and they
don't have any Plan B," said Gianluca Salford, a strategist at
JPMorgan. "Anything that suggests there is a Plan B is
welcomed."
Further signs of economic expansion helped underpin equity
markets, including an annual growth rate in China of 11.9
percent, the fastest pace of growth since 2007. But China's
unexpectedly strong growth rate renewed calls for tighter
policies to prevent an overheated economy and stoked
speculation of when Beijing will allow the yuan to ease.
[]
China's growth buoyed oil prices early but the stronger
dollar tempered the rally and crude hovered below $86 a barrel.
For details see: []
Mixed U.S. economic data kept Wall Street indexes little
changed, though the prospects for a strong corporate earnings
season have helped kindle an equity market rally that has
pushed stock prices to highs last seen in the fall of 2008.
The MSCI index of global stocks <.MIWD00000PUS> rose to an
18-month high, and a pan-European index of regional shares
closed at its highest level since September 2008.
"Earnings season has had a good start, and this is
supporting equity markets," said Tammo Greetfeld, equity
strategist at UniCredit in Munich.
In Europe Roche <ROG.VX> results beat forecasts, lifting
drug makers, and bank stocks added to Wednesday's gains.
The FTSEurofirst 300 <> index of top European shares
closed up 0.6 percent at 1,112.22 points.
Wall Street traded mostly flat.
The Dow Jones industrial average <> was down 9.15
points, or 0.08 percent, at 11,113.96. The Standard & Poor's
500 Index <.SPX> was down 1.37 points, or 0.11 percent, at
1,209.28. The Nasdaq Composite Index <> was up 4.17
points, or 0.17 percent, at 2,509.03.
An upbeat profit forecast from United Parcel Service
<UPS.N>, the largest U.S. package delivery company, pushed up
transportation shares and helped offset concern about a rise in
weekly U.S. jobless claims.
The number of U.S. workers filing new claims for jobless
aid soared last week as a backlog from the Easter holiday was
processed, while U.S. industrial output rose less than expected
in March. []
But a gauge of manufacturing in New York state rose to a
six-month high in April and factory activity in the
mid-Atlantic region that month was at its highest level since
December, according to reports from regional Federal Reserve
banks. [][]
U.S. Treasury debt prices rose.
The benchmark 10-year U.S. Treasury note <US10YT=RR> was up
7/32 in price to yield 3.84 percent.
U.S. light sweet crude oil <CLc1> fell 25 cents to $85.59 a
barrel.
Spot gold prices <XAU=> rose $5.55 to $1,159.40 an ounce.
Oil tends to fall as the dollar rises as it makes
commodities more expensive for buyers using other currencies.
The dollar was up against a basket of major currencies,
with the U.S. Dollar Index <.DXY> up 0.51 percent at 80.602.
Against the yen, the dollar <JPY=> was up 0.12 percent at
93.09.
(Reporting by Caroline Valetkevitch, Chris Reese, Wanfeng Zhou
in New York; Joanne Frearson, Emma Farge, William James and Jan
Harvey in London; writing by Herbert Lash; Editing by Leslie
Adler)
