* World stocks, commodities advance on U.S. data
* Euro recovers on Greek aid move speculation
* Uncertainty keeps Greek spreads elevated
* 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.
European Union President Herman Van Rompuy was quoted as
saying that the EU is prepared to intervene over Greece should
it be required to. However, Greece's finance minister George
Papaconstantinou said Athens will not seek to activate an EU-IMF
aid mechanism agreed by European leaders last month.
"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 this year on the back of the Greek debt crisis.
The euro <EUR=> gained 0.4 percent versus the dollar at
$1.3409.
Global equities measured by the MSCI All-Country World Index
<.MIWD00000PUS> added 0.5 percent, ending a two-day losing run.
The pan-European FTSEurofirst 300 <> index rebounded 1
percent after posting its biggest one-day decline in six weeks,
while Greece's bank shares <.FTATBNK> advanced 1.4 percent.
Signs that Europe's largest economy is on the path to
recovery were underpinned by data showing Germany's trade
surplus widened more than expected in February. []
U.S. stock index futures <DJc1> <SPc1> <NDc1> put on 0.15 to
0.25 percent, indicating a firmer start for Wall Street.
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 <MCU3> gained 0.8 percent.
Gold <XAU=> rose 0.6 percent, extending its gains to a fifth
day and heading for its biggest weekly rise since early January.
GREEK SPREADS STILL ELEVATED
The premium investors demand to buy Greek government debt
<GR10YT=RR> rather than euro zone benchmark German Bunds was at
423 basis points, down from Thursday's high of 465 basis points.
The still elevated yields reflected continued fears Greece
would face a liquidity crunch.
Two- and 10-year bond yields <GR2YT=TWEB><GR10YT=TWEB> eased
to around 7.5 and 7.35 percent respectively.
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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 EU 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
down 1 basis point at 3.883 percent, while those on 10-year
Bunds <EU10YT=RR> were up 2 basis points at 3.132 percent.
The yen was off session lows at 93.66 per dollar <JPY=>
after spot yuan <CNY=CFXS> hit 6.8234 per dollar, its highest
since October 2009.
Spot yuan was buoyed by rising expectations of faster
appreciation for the Chinese currency.
(Additional reporting by Naomi Tajitsu and Kirsten Donovan in
London and Lu Jianxin in Shanghai; editing by John Stonestreet)
