* Euro gains on expectations of rise in interest rates
* Global stocks buoyant; Wall Street ends higher
* Brent loses some earlier gains; gold hits record high
* Portugal requests EU aid
(Adds Portugal aid, quote, updates prices to Wall Street
close)
By Leah Schnurr
NEW YORK, April 6 (Reuters) - The euro rose broadly on
Wednesday a day ahead of an expected interest-rate hike in the
euro zone, while Portugal's decision to request financial aid
from the European Commission had little impact.
Lisbon had held out hope that by steadily meeting budget
goals and cutting spending it could regain investor confidence
and avoid a bailout. But Portugal's situation worsened last
month after its government resigned, sending bond yields
soaring and sparking a series of rating downgrades.
In announcing the decision in a televised statement,
Portugal's prime minister did not specify what type of aid nor
how much was being requested. For details, see []
The lack of market reaction suggested investors had already
viewed the request for aid as a foregone conclusion. The euro
was at a 14-month high against the dollar ahead of the expected
interest rate hike from the European Central Bank on Thursday.
"In some ways it is a positive -- I think Portugal was in
denial. On this side of the pond no one understood exactly how
Portugal was going to be able to dig out of its problems
without getting aid," said David Dietze, chief investment
strategist at Point View Financial Services in Summit, New
Jersey.
Earlier in the day, Portugal sold a total of 1.005 billion
euros ($1.43 billion) in 12-month and six-month T-bills, but
yields rose sharply from last month's auctions.
The slumping greenback and geopolitical unrest earlier sent
Brent crude to a 2-1/2-year high above $123 a barrel before
settling off its highs.
Among other commodities, gold racked up a record high and
silver rallied to a 31-year high for a third consecutive day.
Inflation fears have boosted precious metals, as oil and corn
prices reached new peaks in recent days. A weaker greenback
also makes dollar-priced assets more affordable to holders of
the euro and other currencies.
Global equities gained on a generally brighter economic
picture and U.S. stocks ended higher with help from tech
shares. Volume on Wall Street was relatively light.
The Dow Jones industrial average <> gained 32.85
points, or 0.27 percent, to end unofficially at 12,426.75. The
Standard & Poor's 500 Index <.SPX> rose 2.91 points, or 0.22
percent, to 1,335.54. The Nasdaq Composite Index <> added
8.63 points, or 0.31 percent, to 2,799.82.
World stocks, measured by the MSCI <.MIWD00000OOPUS>,gained
0.4 percent and the S&P 500 <.SPX> closed up 0.2 percent.
(Additional reporting by Chris Reese, Nick Olivari, Frank Tang
and David Sheppard; Editing by Leslie Adler)
