GLOBAL MARKETS-Euro gets limited support from EU/IMF Greek salve

                                
 * Euro regains some ground, as Greek aid details boost
                                
 * U.S. share prices modestly higher
                                
 * Greek/German yield spread hits 1,000 bps before retreat
                                
 By Daniel Bases
                                
 NEW YORK, April 28 (Reuters) - The euro rose and U.S.
stocks managed to climb on Wednesday, a day after suffering
steep losses on worries that Greece could default on its debt,
as details about an aid package to Greece lent support.
                                
 Gold slipped from a 2010 peak but was underpinned by
growing concerns from the euro zone's sovereign risk.
                                
 U.S. Treasuries debt prices slipped from the
flight-to-safety trade on Tuesday after Standard & Poor's
slashed Greece's credit rating to junk status and also cut
Portugal's ratings.
                                
 In another sign that investor fears were easing on
Wednesday, German Bund futures fell more than a quarter of a
point to session lows and the premium investors demand to hold
Greek bonds slipped from multi-year highs after a German
legislator said the Greek aid package had been increased.
                                
 International Monetary Fund Managing Director Dominique
Strauss-Kahn estimated an aid package for Greece at 100 billion
to 120 billion euros over three years, according to German
officials who met with him. On Tuesday, Greece and Portugal
credit ratings were downgraded, triggering a sell-off in global
equities and the euro. [ID:nLDE63R1U1]
                                
 "The size of the aid package hopefully puts the issue of
Greece and contagion to rest, but only time will tell," said
Henry Smith, chief investment officer at Haverford Trust in
Philadelphia.
                                
 The euro recovered from a one-year low against the U.S.
dollar, rising 0.34 percent to $1.3208 <EUR=>. The U.S. dollar
index, a measure of the greenback against a basket of major
trading-partner currencies, rose 0.19 percent <.DXY>
                                
 The 10-year Greek/German government bond yield spread
narrowed to 828 basis points after earlier peaking at more than
1,000 basis points <GR10YT=TWEB><DE10YT=TWEB>.
                                
 At one point the Greek government's two-year debt yield
surged to 38 percent. [ID:nLDE63R1YF]
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 For euro zone debt crisis in graphics, click on:
 http://r.reuters.com/fyw72j
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 In morning trade, the Dow Jones industrial average <.DJI>
rose 43.15 points, or 0.39 percent, to 11,035.14. The Standard
& Poor's 500 Index <.SPX> gained 6.60 points, or 0.56 percent,
to 1,190.31. The Nasdaq Composite Index <.IXIC> shed 1.11
points, or 0.04 percent, to 2,470.36.
                                
 Earnings season stayed in high gear, with Dow Chemical Co
<DOW.N> up 4.2 percent to $31.34 after reporting a profit that
beat expectations. For details see [ID:nN28164681].
                                
 "Fundamentals are pretty strong, earnings should continue
to surprise to the upside, and investors are catching their
breath, realizing policy makers will ultimately do the right
thing for Greece," said Paul Zemsky, head of asset allocation
at ING in New York.
                                
 Shares of Goldman Sachs Group <GS.N> rose 2.17 percent a
day after members of a U.S. Senate subcommittee grilled the
bank's executives on its role in the financial meltdown.
Goldman has been accused of fraud by the U.S. Securities and
Exchange Commission. [ID:nN27251669]
                                
 U.S. investors also looked ahead to the Federal Reserve's
interest rate decision and accompanying policy statement at the
close of its two-day meeeting later on Wednesday. The Federal
Open Market Committee is expected to hold interest rates near
zero and repeat its vow of very low rates for an extended
period. The statement is expected at around 2:15 p.m. EDT.
(1815 GMT) For details, see [ID:nN2298630].
                                
 European shares continued to decline after recording their
biggest one-day fall in five months on Tuesday. The
FTSEurofirst 300 <.FTEU3> index of top European shares was down
0.85 percent.
                                
 World stocks as measured by MSCI <.MIWD00000PUS> were down
0.88 percent, having lost more than 2 percent on Tuesday. The
more volatile emerging market index <.MSCIEF> lost 1.59 percent
to add to 1.4 percent in the previous session.
                                
 U.S. Treasuries fell back from Tuesday's gains ahead of
both the Fed's policy announcement and the sale of $42 billion
worth of five-year notes. The benchmark 10-year Treasury fell
14/32 of a point in price, pushing the yield up to 3.742
percent.
                                
 Gold rose 0.10 percent, or $1.22 to $1,169.25 <XAU=>.
 (Additional reporting by Ryan Vlastelica and Richard Leong in
New York, Jeremy Gaunt, Atul Prakash and Jessica Mortimer in
London; Editing by Leslie Adler)