* U.S. retail sales bolsters global stocks
* Solid earnings by JPMorgan, Intel aid recovery view
* Greece concerns still hang over market
By Al Yoon and Jeremy Gaunt
NEW YORK/LONDON, April 14 (Reuters) - World stocks rose to
1-1/2 year highs on Wednesday as a U.S. consumer spending
report and earnings at JP Morgan Chase and Intel underscored
the economic rebound, which weakened the dollar as investors
sought riskier assets.
Investors remained cautious about Greece's debt, however,
and pushed yield premiums on the nation's bonds higher despite
a European Union rescue plan hammered out last weekend.
Wall Street shares opened firmly after the U.S. government
reported retail sales jumped 1.6 percent, the largest increase
since November, as consumers stepped up purchases of vehicles
and a wide range of goods. Analysts polled by Reuters had
forecast retail sales increasing 1.2 percent last month.
Earlier, JPMorgan Chase & Co. <JPM.N> said it had net first
quarter income of 74 cents a share versus a consensus forecast
of 64 cents per share. It compared with 40 cents a year
earlier.
"This whole rally is being vindicated by earnings which
have been phenomenal, and the comeback of the consumer, which
could be seasonal but sustainable," said Keith Springer,
president of Capital Financial Advisory Services in Sacramento,
California.
Intel Corp's <INTC.O> sales and margin forecasts late on
Tuesday also trounced Wall Street expectations, reinforcing
hopes for an acceleration in the tech sector's recovery.
[]
In a similar vein, Dutch chip equipment maker ASML
<ASML.AS> said first-quarter orders beat even the most
optimistic expectations.
World stocks as measured by MSCI <.MIWD00000PUS> gained
about 0.6 percent to its highest since Sept. 2008, when the
financial crisis was coming to a head. Its emerging market
counterpart <.MSCIEF> rose more than 1 percent.
In the U.S., the Dow Jones industrial average <> rose
21.39 points, or 0.19 percent, to 11,040.81. The Standard &
Poor's 500 Index <.SPX> increased 2.92 points, or 0.24
percent, to 1,200.22 and the Nasdaq Composite Index <>
climbed 15.31 points, or 0.62 percent, to 2,481.30.
The FTSEurofirst 300 <> gained more than 0.6 percent
and Japan's Nikkei <> closed up 0.39 percent.
"It looks like nothing is going to stop this market from
going higher at the moment, anyway, even any possible Greek
debt default," said David Morrison, market strategist at GTF
Global.
GREECE PRESSURE
Greece's debt problems came into focus again, despite the
European Union's rescue plan outlined at the weekend.
The premium investors' demand to buy 10-year Greek
government bonds rather than euro zone benchmark German Bunds
rose to the highest level since the euro zone on Sunday agreed
an aid deal for Greece.
On Tuesday, Greece raised 1.56 billion euros via a 26- and
52-week T-Bill auction, paying a hefty yield. []
In other bonds, U.S. Treasury debt prices wavered as tame
inflation data for March soothed concerns that rising prices
could force interest rates higher, while signs of economic
strength in retail sales weighed. Yields on benchmark 10-year
Treasury notes rose 0.01 percentage point to 3.83 percent.
The U.S. government said consumer prices rose 0.1 percent
in March, matching economists' expectations for a tame reading
and giving the Federal Reserve leeway to maintain ultra-low
interest rates. For details see []
The dollar eased after Singapore revalued its currency and
as the U.S. earnings boosted appetite for riskier currencies.
Commodity currencies such as the Australian and Canadian
dollars gained against the U.S. unit, while the low-yielding
yen also softened.
Singapore's central bank re-centred its trade-weighted band
to the prevailing exchange rate level. Economists said this
meant the currency had been revalued by between 1.2 and 1.4
percent. [].
The euro pared gains against the dollar after Moody's
ratings agency told Reuters there was still a greater than 50
percent chance of a rating cut for debt-stricken Greece in the
next 12 to 18 months. []
At mid-morning in New York, the dollar edged lower against
a basket of major trading-partner currencies, with the U.S.
Dollar Index <.DXY> off 0.06 percent. But the euro <EUR=> was
little changed at $1.3602, while the dollar <JPY=> rose 0.36
percent to 93.55 yen.
In energy and commodities, U.S. light sweet crude oil <CLc1>
rose 26 cents, or 0.31 percent, to $84.31 per barrel, and spot
gold prices <XAU=> rose $2.95, or 0.26 percent, to $1153.10.
(Additional reporting by Jon Hopkins in London, Editing by
Chizu Nomiyama)
