* Euro marginally higher after ECB assurances on Greek
rescue
* Worries about corrosive euro zone debt problems remain
* Equities shored up by upbeat Fed comments on economy
* European shares seen higher but Asian stocks little
changed
(Repeats to more subscribers)
By Ron Popeski
SINGAPORE, April 29 (Reuters) - The euro inched higher on
Thursday from a one-year low the previous day as senior
European officials gave assurances that they were serious about
helping Greece find a way out of its escalating debt crisis.
European shares <> also rose in early trade, buoyed
largely by gains on Wall Street after the U.S. Federal Reserve
gave an upbeat assessment of the world's largest economy. []
The Fed comments, and its decision to keep interest rates
near record lows, also lent some support to shares in Asia,
though most markets failed to gain traction as European Union
members squabbled over details of a Greek bailout.
Analysts said the problems in Europe, including a cut by
Standard & Poors to Spain's credit rating overnight,
highlighted the strength of Asian economies, which have snapped
back from the global financial crisis much more quickly than
the West.
"The mood surrounding the euro remains sour," said Satoshi
Okagawa, head of forex and money trading group at Sumitomo
Mitsui Bank in Singapore.
The battered euro <EUR=> edged up to $1.3237, a rise of
about 0.1 percent from late New York trade and above
Wednesday's low of $1.3237 on EBS, as European officials rushed
to provide assurances that funds would be forthcoming for
Greece.
European Central Bank Governing Council member Axel Weber
told Germany's Bild newspaper that a Greek debt default would
have "incalculable" consequences on markets and other
countries.
France's budget minister also expressed the resolve of euro
zone countries to help Athens.
The single currency was beaten down on Wednesday as Germany
baulked again at parts of the aid plan, but it recovered on
reports that the bailout may be much bigger than anticipated
and could be spread over several years.
Markets had feared that an earlier relief plan may only be
enough to tide Greece over its first debt repayment hurdle on
May 19, when it faces a maturing 8.5 billion euro bond. Most
economists believe Greece is facing a long and painful
multi-year crisis, one which could repeatedly test EU unity.
Juergen Trittin, parliamentary leader for Germany's Green
party, quoted IMF chief Dominique Strauss-Kahn as saying the
package for Greece would be worth 100-120 billion euros
($133-160 billion) over three years. []
European Economic Affairs Commissioner Olli Rehn told
Finnish television Greece would need "tens of billions of
euros" on top of the 45 billion pledged by the IMF and euro
zone governments for this year. Strauss-Kahn declined to
comment, saying the rescue package had not been settled.
STOCKS SUPPORTED BY FED ACTION
While investors remain fixated by troubles of Greece,
Portugal and Spain, equity markets drew support from Fed
comments that U.S. economic activity has continued to
strengthen, even as it repeated its pledge to keep interest
rates low for an extended period.[]
Stronger U.S. growth could offset any decline in Europe
caused by problems in weaker euro zone economies.
Major U.S. stock indexes rose as much as 0.7 percent on the
Fed statement, and S&P 500 futures <SPc1> were indicated higher
on Thursday.
Low borrowing costs have helped fuel a massive stock market
rally since early last year, though momentum has sputtered in
recent months as Greece's financial problems escalated.
The MSCI index of Asian stocks outside of Japan
<.MIAPJ0000PUS> was off 0.1 percent by 0630 GMT, while Japanese
markets were closed for the start of the country's long Golden
Week holiday.
Asia is seen as having limited direct exposure to European
debt problems for now. But analysts at DBS say euro zone
uncertainties may keep investors from adding to their positions
in this year's hot emerging stock and bond markets in
Indonesia, Malaysia, Thailand and the Philippines.
Crude oil prices also steadied on hopes that U.S. demand
will improve this summer, with U.S. light crude futures <CLc1>
easing but holding above $83 a barrel.
Gold was quoted just above $1,165 an ounce after a surge at
its previous session to its highest year in response to
concerns over European sovereign debt.
The U.S. dollar eased 0.15 percent against a basket of
major global currencies <.DXY>.
(Editing by Kim Coghill)
