* Greece fiscal aid package; economic reports buoy shares
* Cautious confidence over Greek package, euro rises
* US durable goods, housing data point to rebound
(Updates to close of U.S. markets)
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 reduced demand for U.S.
Treasury debt prices as investors curbed their bid for safety.
U.S. stocks hit a 19-month high, helped by energy shares as
crude oil prices rose 1.7 percent on the positive economic
data.
Greece's move to activate a 45 billion euro
EU/International Monetary Fund bailout package and a statement
of support from Germany, which had initially been reluctant to
make any commitment to support Greece, reassured investors. For
details, 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 10.8
percent on Friday. The yield started the year near 4 percent.
On Wall Street, stocks rose broadly after a two-day selloff
as drug maker Merck eased concerns about the impact of
health-care reform, saying its costs will be relatively low.
The Dow Jones industrial average <> rose 69.99 points,
or 0.63 percent, to 11,204.28. The Standard & Poor's 500 Index
<.SPX> climbed 8.61 points, or 0.71 percent, to 1,217.28 and
the Nasdaq Composite Index <> increased 11.08 points, or
0.44 percent, to 2,530.15.
Merck & Co <MRK.N> jumped 5 percent to $35.46, making it
the top gainer on the Dow. The drugmaker said its costs related
to U.S. health-care reform will be a far smaller percentage of
total company sales compared with rival drug makers. For
details, see []
The S&P healthcare index <.GSPA> was up 1.1 percent but is
down 2.5 percent for the month. For an analysis, see
[]
"The sector has been a dismal performer for almost a month
now, so maybe investors are finally beginning to get their
hands around all the minutia in the legislation that was passed
and what it actually means for companies in the near term,"
said Jeff Kleintop, chief market strategist at LPL Financial in
Boston.
Shares of homebuilders rose after the U.S. Commerce
Department said sales of newly built single-family homes rose
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> rose 4 percent
to $20.53. An index of homebuilder shares <.DJUSHB> rose 3.3
percent.
Microsoft Corp Inc <MSFT.O> slipped 1.3 percent to $30.99
after it reported its quarterly profit jumped, but the report
failed to meet Wall Street's heightened expectations.
[]
World stocks as measured by MSCI <.MIWD00000PUS> rose 0.62
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 research firm 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, also rose about 10 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 0.59 percent to 93.97, and
the U.S. Dollar Index <.DXY> declined 0.20 percent to 81.405.
U.S. Treasury debt prices fell after reports pointed to
stronger economic growth, which could increase inflation and
reduce returns on fixed-income securities. In addition to home
sales, U.S. non-defense capital orders excluding aircraft -- a
gauge of business investment -- rose 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 $1.42, or 1.7 percent, to settle at $85.12 per
barrel, and spot gold prices <XAU=> rose $14.85, or 1.30
percent, to $1,155.80.
(Additional reporting by Ian Chua, Simon Falush, Naomi
Tajitsu, Brian Gorman and Harpreet Bahl in London; Editing by
Leslie Adler)
