* Global stocks rise after Greek rescue boosts sentiment
* Euro gains on Greek aid agreement but caution remains
* Oil rises above $85 a barrel after big China demand
* Bond prices gain in anticipation of poor company results
(Updates with close of European markets)
By Herbert Lash
NEW YORK, April 12 (Reuters) - Global stocks inched higher
on Monday after the euro zone detailed the amount of aid it is
willing to offer Greece, but the euro and Greek borrowing costs
pared initial gains after Germany expressed caution about the
rescue package.
The broadly stronger euro pushed gold to near four-month
highs and copper rose to a 20-month high before a spokesman for
the German Finance Ministry said European leaders would need to
activate any Greek aid -- showing disagreement over how funds
would be provided. For details see: []
However, the safety net for Greece reached over the weekend
whetted investors' appetite for riskier assets, lifting Asian
shares to 22-month highs and helping keep U.S. stock indexes
slightly above break-even.
Euro zone ministers approved a 30 billion euro ($40.5
billion) aid package of loans, which Greece can tap if needed,
with at least 10 billion euros also expected from the
International Monetary Fund. []
The euro <EUR=> was up 0.59 percent at $1.3575.
European shares ended flat, with banks gaining after the
Greek rescue package helped soothed some nerves over Athens'
debt problems, while miners fell as metals prices retreated
from earlier highs. []
"There are chances of a certain easing of fears. However,
in the medium term, any real improvement in the tensions within
the European Monetary Union needs to see the underlying causes
being addressed," said Tammo Greetfeld, equity strategist at
UniCredit.
The FTSEurofirst 300 <> index of top European shares
closed flat at 1,101.44 points after rising to 1,105.08 -- its
highest in more than 18 months.
But overall investor sentiment remained positive. The CBOE
Volatility Index <.VIX>, which measures the implied volatility
of the S&P 500 Index <.SPX>, hit a 33-month intraday low.
The Australian dollar briefly rose to its highest level in
five months and Greek government bond yields, which move in the
opposite direction of their price, slid across the curve.
The MSCI All-Country World Index <.MIWD00000PUS> advanced
0.4 percent to an 18-month high.
U.S. stocks rose in anticipation that first-quarter
earnings will be solid. Aluminum company Alcoa Inc <AA.N>,
which typically kicks off the quarterly earnings season, rose
2.2 pecent in midday trade. Alcoa, a Dow component, is to
report results after the bell.
Investors are anxious to see if earnings will be enough to
drive stocks higher given their recent rally.
The S&P 500 rose to within 2 points of 1,200, a level seen
as an area of technical resistance. The Dow traded just above
11,000, which it briefly passed on Friday for the first time
since September 2008.
"Earnings are going to be very good on both cost and
revenues and if you're ever going to celebrate, it would be
right now," said Jim Awad, managing director at Zephyr
Management in New York. "If (the market) doesn't, it means it's
already priced in."
Before 1 p.m., the Dow Jones industrial average <> was
up 17.76 points, or 0.16 percent, at 11,015.11. The Standard &
Poor's 500 Index <.SPX> was up 2.65 points, or 0.22 percent, at
1,197.02. The Nasdaq Composite Index <> was up 3.67
points, or 0.15 percent, at 2,457.72.
U.S. Treasury debt prices rose as bond investors questioned
whether corporate earnings would be strong enough to justify
current share price levels and lingering concerns about how the
Greece bailout would be implemented and if it would work.
[]
The euro zone's pledge to aid Athens failed to address
longer-term challenges of solvency for debt-stricken Greece,
said Mohamed El-Erian, chief executive and co-chief investment
officer of Pacific Investment Management Co. []
The benchmark 10-year U.S. Treasury note <US10YT=RR> was up
4/32 in price to yield 3.87 percent.
Oil prices inched up above $85 a barrel, as the euro
strengthened against the dollar and data showed a big jump in
Chinese crude imports. []
Chinese crude imports jumped 13.8 percent from the previous
month and reached 4.95 million barrels a day, preliminary data
released by the General Administration of Customs showed.
U.S. light sweet crude oil <CLc1> rose 18 cents to $85.10 a
barrel.
Spot gold prices <XAU=> rose $3.65 to $1,163.50 an ounce.
The dollar was down against a basket of major currencies,
with the U.S. Dollar Index <.DXY> down 0.59 percent at 80.615.
Against the yen, the dollar <JPY=> was up 0.12 percent at
93.26.
(Reporting by Nick Olivari, Chris Reese in New York;
Christopher Johnson, Harpreet Bhal, Ian Chua, William James in
London; writing by Herbert Lash; Editing by Leslie Adler)
