* World stocks, commodities advance on U.S. data
* Euro recovers on Greek aid move speculation
* Yen retreats; rise on yuan talk seen overdone
By Dominic Lau
LONDON, April 9 (Reuters) - World stocks and commodities
rose on Friday as stronger U.S. retail sales boosted optimism
about the economic recovery, while the euro recovered on
speculation that debt-stricken Greece may soon receive help.
Greece's borrowing costs eased, though they remained at
elevated levels.
"People are buying the euro on speculation the IMF may step
in," said Geoffrey Yu, currency strategist at UBS in London.
Yu said any aid to Greece would likely trigger a relief
rally in the euro, which has fallen more than 6 percent against
the dollar so far this year on the back of the Greek debt
crisis.
The single currency gained 0.4 percent versus the dollar at
$1.3405.
Global equities measured by the MSCI All-Country World Index
<.MIWD00000PUS> advanced 0.5 percent, snapping a two-day losing
run.
The pan-European FTSEurofirst 300 <> index rebounded
1.1 percent after posting its biggest one-day decline in six
weeks, while Greece's share benchmark <> put on 0.8 percent.
Earlier, Asian stocks outside Japan <.MIAPJ0000PUS> edged
closer to a 22-month high.
The positive U.S. economic indicators also boosted commodity
prices, with oil <CLc1> snapping two days of losses to trade
above $86 a barrel, while copper prices <MCU3> gained 0.9
percent.
Gold <XAU=> rose 0.4 percent, extending its gains to a fifth
day and heading for its biggest weekly rise since early January.
GREEK CURVE STILL INVERTED
The premium investors demand to buy Greek government debt
<GR10YT=RR> rather than euro zone benchmark German Bunds was at
413 basis points, down from Thursday's high of 465 basis points.
The still elevated yields reflected continued fears Greece
would face a liquidity crunch.
The Greek 2/10 yield curve remained inverted with two-year
bond yields <GR2YT=TWEB> above those of 10-year bonds
<GR10YT=TWEB>, signalling worries of a near-term liquidity
crisis.
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For a graphic showing the shift up in the Greek yield curve
since last week and the start of the year, click on:
http://r.reuters.com/fuz96j
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Investors dumped Greek assets on Thursday, betting the
country would have to ask the European Union and International
Monetary Fund to implement a support package, even as Athens
sought to reassure markets it was not at risk of going bankrupt
[].
Yields on 10-year benchmark U.S. Treasuries <US10YT=RR> were
steady at 3.89 percent, while those on 10-year Bunds <EU10YT=RR>
were up 1 basis points at 3.122 percent.
The yen slipped broadly as traders trimmed long positions in
the Japanese currency on the view that its rise the previous day
on talk of a yuan revaluation in the near term was overdone.
The dollar was up 0.2 percent against the yen at 93.52.
Spot yuan <CNY=CFXS> was flat against the dollar, showing no
sign that a revaluation was imminent after closing at its
highest level since October on Thursday on a New York Times
report that China was close to announcing a policy shift.
[]
China's central bank fixed the yuan's daily mid-point, or
reference rate, at a level almost the same as the previous day.
(Additional reporting by Naomi Tajitsu and Kirsten Donovan;
editing by John Stonestreet)
