* MSCI world equity index up 0.5 pct, Europe shrs up 1.3 pct
* Goldman earnings above forecasts; U.S. equities seen up
* Dollar falls; euro up after ZEW data; Greece still a worry
By Jessica Mortimer
LONDON, April 20 (Reuters) - Equities rose on Tuesday,
helped by buoyant corporate earnings and growing optimism about
the global economic outlook, which weighed on the U.S. dollar as
risk-taking sentiment strengthened.
Above-forecast earnings from Goldman Sachs Group Inc <GS.N>,
which also said it was encouraged by growth prospects for the
economy, deflected attention away from the U.S. Securities and
Exchange Commission's fraud charge against it. []
European shares gained more than 1 percent, while U.S.
futures pointed to a stronger open on Wall Street, buoyed by
Citigroup posting its best results since 2007 on Monday and an
upbeat profit outlook from German carmaker Daimler <DAIGn.DE>.
The FTSEurofirst 300 index <> of major European shares
rose 1.3 percent, while U.S. stock futures <SPc1> <DJc1> <NDc1>
were up by 0.2-0.4 percent.
"Results have driven shares higher. After a couple of down
days Citi came out with stellar results and people started
buying again," said Mic Mills, senior trader at ETX Capital.
"Investors are a bit concerned that equities are a little
overbought, but on the other hand they don't want to be caught
on the wrong side of a rally."
The MSCI world equity index <.MIWD00000PUS> gained 0.5
percent and emerging stocks <.MSCIEF> were up 1 percent.
Oil <CLc1> jumped more than $1 per barrel to $82.52 on
firmer risk appetite and as some European flights resumed after
a threat from spewing volcanic ash in Iceland receded.
A fall in the dollar and a rise in other commodity prices
lifted gold prices <XAU=> back above $1,140 an ounce.
EURO GAINS; GREECE CONCERNS REMAIN
A strong rebound in German analyst and investor sentiment in
the latest ZEW survey pushed the euro higher, causing it to
erase earlier falls. []
The euro <EUR=> rose 0.1 percent to $1.3502, while
strengthening risk demand weighed on the safe-haven U.S. dollar
<.DXY>, which fell 0.2 percent against a basket of currencies.
"April's sharp rise in German ZEW investor sentiment
provides some hope that the recovery has not ground to a
complete halt after the economy's poor start to the year," said
Ben May at Capital Economics.
Concerns about Greece's parlous fiscal situation lingered,
however, limiting the single currency's gains and causing the
spread between Greek and German 10-year yields to widen to a
fresh euro lifetime high. []
German Bund futures <FGBLc1> fell 27 ticks to 123.47, dented
by the rise in equities.
The Wall Street Journal reported that European Central Bank
Governing Council member Axel Weber said Greece may require
assistance of up to 80 billion euros. []
Greece has yet to ask for activation of the EU/IMF aid
safety net agreed earlier this month, estimated at 45 billion
euros in the first year. []
