* Greece fiscal aid package; economic reports buoy shares
* Cautious confidence over Greek package, euro rises
* US durable goods, housing data point to rebound
By Al Yoon
NEW YORK, April 23 (Reuters) - Global stocks and the euro
rose on Friday as Greece's request for emergency aid gave
measured hope that the nation's short-term debt situation could
be resolved soon and U.S. and European economic data
underscored that a global rebound was forging ahead.
The brightening economic outlook in the United States, as
new-home sales shot up 27 percent in March, and the diminishing
fears of an acute debt crisis in Europe drove down U.S.
Treasury debt prices as investors curbed their bid for safety.
Greek Prime Minister George Papandreou asked to activate a
45 billion euro EU/International Monetary Fund bailout package.
And Germany's finance minister later said that Germany was
ready to contribute to an aid package for Greece, which
reassured investors who had been unsettled by Germany's initial
reluctance to make any commitment to bail out Greece. For more,
please see: []
There was skepticism, however, about the longer-term
prospects for Greece.
"There is a bit more certainty over Greece ... but the true
fact of the matter is that 45 billion (euros) isn't enough to
sort out the Greek problem," said David Morrisson, market
strategist at GFT Global.
The uncertainty limited gains in the euro, which rebounded
after earlier sinking to a one-year low of $1.3202.
With liquidity in Greek bonds practically dried up and the
yield on a two-year Greek paper <GR2YT=TWEB> soaring, market
players had predicted that the debt-ridden country had little
alternative to seeking financial aid. Two-year Greek yields,
after topping 12 percent on Thursday, declined to about 10.5
percent on Friday. The yield started the year near 4 percent.
The news on Greece helped drive up trading on Wall Street,
but gains were kept in check as shares of Microsoft Corp fell
after its quarterly results disappointed investors.
The Dow Jones industrial average <> rose 10.66 points,
or 0.10 percent, to 11,144.95. The Standard & Poor's 500 Index
<.SPX> was little changed at 1,208.72 and the Nasdaq Composite
Index <> lost 5.11 points, or 0.20 percent, to 2,513.96.
Microsoft's <MSFT.O> profit beat analysts' estimates but
analysts said its sales suggested that a technology rebound was
still lacking. Shares of Microsoft declined 1.4 percent, to
$30.94.
Shares of homebuilders rose after the U.S. Commerce
Department said sales of newly built single-family homes
rebounded to the highest level in eight months as buyers rushed
to take advantage of a homebuyer tax credit.
Shares of homebuilder Lennar Corp <LEN.N> jumped to a more
than two-year high, before trimming gains to trade up 4.7
percent at $20.66. An index of homebuilder shares <.DJUSHB>
rose 4.7 percent.
World stocks as measured by MSCI <.MIWD00000PUS> rose 0.19
percent.
In Europe, the FTSEurofirst 300 <> index of top
European shares closed up 0.8 percent at 1,092.24 points,
rebounding from a three-week closing low on Thursday.
Banks were among the biggest gainers as the concerns over
Greece eased.
European shares were also boosted by a much
better-than-expected German business sentiment survey from
Munich-based think tank Ifo, which climbed to 101.6 from an
upwardly revised 98.2 in March. []
Shares in Volvo <VOLVb.ST> , the world's No. 2 truck maker,
soared more than 10 percent after its first-quarter profit beat
expectations []. Ericsson <ERICb.ST> , the maker of
mobile telecom gear, rose 8.2 percent on strong margin growth.
[].
The battered euro rose for the first day in seven amid
confidence that the financial aid package for Greece would help
stanch the crisis that has gripped the nation this year.
The euro's rebound lost steam as analysts said tapping the
aid mechanism was not likely to solve Greece's longer-term
problems in tackling its budget deficit. Investors sought
clarity and details on how the loan would be disbursed.
"The euro bounce is very limited because the activation
itself lacked details," said Amelia Bourdeau, senior currency
strategist at UBS in Stamford, Connecticut. "We don't know how
long it's going to take for parliaments in Europe to ratify the
process of giving Greece the money."
The euro <EUR=> rose 0.58 percent to 1.3367. Against the
Japanese yen, the dollar <JPY=> rose 0.78 percent to 94.15, and
the U.S. Dollar Index <.DXY> declined 0.10 percent to 81.486.
U.S. Treasury debt prices fell after reports pointed to
stronger economic growth. In addition to home sales, U.S.
non-defense capital orders excluding aircraft -- a gauge of
business investment -- grew in March.
Yields on benchmark 10-year Treasury notes <US10YT=RR> rose
0.05 percentage point to 3.82 percent.
In energy and commodities prices, U.S. light sweet crude
oil <CLc1> rose 90 cents, or 1.08 percent, to $84.60 per
barrel,, and spot gold prices <XAU=> rose $13.00, or 1.14
percent, to $1,153.90.
(Additional reporting by Ian Chua, Simon Falush, Naomi
Tajitsu, Brian Gorman and Harpreet Bahl in London; Editing by
Leslie Adler)
