* Global stocks rise as EU leaders agree on Greece plan
* Euro falls as worries persist about Greece rescue plan
* Oil rises above $75 a barrel on rising demand data
(Updates with close of European markets, changes dateline)
By Herbert Lash
NEW YORK, Feb 11 (Reuters) - World stocks and the dollar
gained on Thursday in a zig-zag session after a deal emerged to
help Greece tackle its debt woes, removing some of the
uncertainty lingering about a possible sovereign default.
European shares extended the week's rally to a fourth day
as stronger commodity and pharmaceutical shares outpaced a
sharp decline in banks, pulled down by uncertainty over details
over the rescue plan for Greece. On Wall Street, all three
major indexes advanced, also buoyed by data that indicated the
U.S. labor market may be healing.
European leaders agreed to provide financial aid to Greece,
but details on the package, which leaked from multiple sources,
were not expected until early next week when European Union
finance ministers meet. For details see [].
The euro extended losses versus the U.S. dollar, falling
below $1.3600, as investors expressed concern that the plan may
not be enough to pull Greece out from its fiscal crisis.
[]
"The confusion over the bailout is leaving traders a little
nervous. It seems now that the EU has made a decision to help
Greece, but just what that help entails is still a mystery,"
said Jimmy Yates, head of equities at CMC Markets.
The head of the Eurogroup, Jean-Claude Juncker, did say
that any aid for Greece, would not be "money for nothing,"
saying that aid would be conditioned on "drastic measures."
Wall Street rose as the news on Greece relieved anxiety and
on an improving U.S. labor market picture as first-time claims
for jobless benefits fell more than expected. Copper futures
rallied sharply on the jobless data and as Chinese inflation
data bolstered improved economic sentiment.
The pan-European FTSEurofirst 300 index <> closed up
0.34 percent at 990.51 points.
Shortly after midday, the Dow Jones industrial average
<> was up 80.64 points, or 0.80 percent, at 10,119.02. The
Standard & Poor's 500 Index <.SPX> was up 7.01 points, or 0.66
percent, at 1,075.14. The Nasdaq Composite Index <> was up
25.36 points, or 1.18 percent, at 2,173.23.
The costs of protecting against a government debt default
by Greece and Portugal rose as possible obstacles for the Greek
rescue plan emerged. []
Five-year credit default swaps on Greek government debt
climbed to 352.0 basis points from 332.5 earlier in the
session, according to data from CDS monitor CMA DataVision.
"There is still some nervousness. Markets could also
perhaps realize more and more that there may be a bailout but
it will come at a cost and the cost is that they really have to
be tough on the fiscal side," Klaus Wiener, head of research at
Generali Investments, said of expectations of what an aid
package for Greece may entail.
"When we look at the pillars of growth that we had over the
last months, it was really fiscal spending. Now if countries
have to go into reverse, that's not boding well for the growth
momentum," he added.
The euro <EUR=> was down 0.50 percent at $1.3657. Against
the yen, the dollar <JPY=> was down 0.26 percent at 89.74.
The dollar was up against a basket of major currencies,
with the U.S. Dollar Index <.DXY> up 0.14 percent at 80.138.
Oil rose above $75 a barrel after the International Energy
Agency said global crude demand would grow by 120,000 barrels a
day more than previously expected in 2010. []
U.S. light sweet crude oil <CLc1> rose 58 cents to $75.10 a
barrel.
Gold rose to a near one-week high above $1,090 an ounce.
Spot gold prices <XAU=> rose $19.25 to $1,091.70.
The benchmark 10-year U.S. Treasury note <US10YT=RR> rose
52/32 in price to yield 3.74 percent.
(Reporting by Leah Schnurr and Gertrude Chavez-Dreyfuss in New
York; David Brett, Kirsten Donovan, George Matlock, Brian
Gorman, Christopher Johnson and Jan Harvey in London; writing
by Herbert Lash)
