* MSCI world equity index up 0.5 pct at 282.96
* Euro firmer after EU President says deal to help Greece
* Dollar erases Bernanke gains; oil firmer
By Natsuko Waki
LONDON, Feb 11 (Reuters) - World stocks held near a one-week
high while the euro rose broadly on Thursday after euro zone
leaders flagged that a deal had been reached to help Greece
tackle its debt and deficit problems.
The premium investors demand for holding Greek debt rather
than safer German bonds fell and the default insurance cost for
Greek debt also eased as European Union President Herman Van
Rompuy said several key euro zone officials have reached a deal
in Brussels to help Greece. []
Concerns over the crisis in Greece and other highly indebted
euro zone nations, along with expectations that U.S. interest
rates would rise at some point, had weighed on the euro and
global stocks in recent sessions.
"European authorities look to have been backed into a corner
to such an extent that they really do need to deliver something,
either a concrete plan or a strongly worded statement," said Tom
Levinson, currency strategist at ING.
MSCI world equity index <.MIWD00000PUS> rose 0.5 percent
while the FTSEurofirst 300 index <> gained 0.7 percent.
Rio Tinto <RIO.L> rose more than 4 percent at one point after
its second half profits beat analysts' forecasts.
U.S. stock futures rose around half a percent <SPc1>,
pointing to a firmer open on Wall Street.
The euro rose 0.1 percent to $1.3745 <EUR=> after hitting an
8-1/2 month low last week. The Greek/German 10-year bond yield
spread fell 17 basis points to 266 bps. Greek five-year credit
default swaps also fell to 332.5 bps from 340.1 bps.
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For a graphic on euro and Greek bond spread, click on:
http://r.reuters.com/xek67h
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Emerging stocks <.MSCIEF> rose 1.1 percent.
U.S. crude oil <CLc1> rose 1 percent to $75.32 a barrel
after the U.S. Energy Information Administration raised
forecasts on oil prices and world oil demand in 2010.
German government bond futures <FGBLc1> fell 37 ticks.
The dollar <.DXY> fell 0.2 percent against a basket of major
currencies, erasing gains made after Bernanke's speech.
Federal Reserve chairman Ben Bernanke said on Wednesday the
Fed would likely begin tightening monetary policy by removing
some of the cash from the financial system before it turns to
raise benchmark short-term interest rates.
In his most comprehensive description to date of how the Fed
aims to dismantle emergency economic support, Bernanke said the
central bank could soon raise the discount rate it charges banks
for emergency loans, but stressed that would not be akin to a
tightening in monetary policy.
"The U.S. is pointing towards normality. Thus it is no
longer clear that the dollar is the most obvious funding
currency for risky investment," RBS said in a note to clients.
(Additional reporting by Naomi Tajitsu; Editing by Ruth
Pitchford)
