* U.S. retail sales bolsters global stocks
* Solid earnings by JPMorgan, Intel aid recovery view
* Greece, Portugal concerns hang over market
(Updates New York, Europe trading)
By Al Yoon
NEW YORK, April 14 (Reuters) - World stocks rose to more
than 1-1/2 year highs on Wednesday and oil snapped a five-day
losing streak as unexpected strength in U.S. consumer spending
and earnings at JPMorgan Chase and Intel underscored the
economic rebound.
Investors remained cautious about Greece's debt, however,
and pushed risk premiums on the nation's bonds higher despite a
European Union rescue plan hammered out last weekend.
The U.S. government reported retail sales jumped 1.6
percent in March, the largest increase since November, as
consumers stepped up purchases of vehicles and a wide range of
goods. The data, which topped analysts' estimate for an
increase of 1.2 percent, drove optimism about consumer
spending, which drives about two thirds of U.S. economic
activity.
"This whole rally is being vindicated by earnings which
have been phenomenal, and the comeback of the consumer," said
Keith Springer, president of Capital Financial Advisory
Services in Sacramento, California.
Intel's <INTC.O> reported forecast-beating results late on
Tuesday that reinforced hopes for an acceleration in the tech
sector's recovery. []. Its shares rose 3.1
percent.
JPMorgan <JPM.N> stock jumped 3.3 percent after it reported
earnings that topped estimates.
Indexes of financial shares and technology shares led gains
on the broad S&P 500, which broke above the 1,200 mark for the
first time since September 2008.
In the U.S., the Dow Jones industrial average <>
rose62.88 points, or 0.57 percent, to 11,082.30, also the
highest since September 2008. The Standard & Poor's 500 Index
<.SPX> increased 8.77 points, or 0.73 percent, to 1,206.07 and
the Nasdaq Composite Index <> climbed 28.19 points, or
1.14 percent, to 2,494.18.
In Europe, the pan-European FTSEurofirst 300 <>
gained 0.6 percent to reach an 18-month closing high at
1,105.32 points.
European banking and tech stocks led the rally, rising on
the strength of the U.S. results.
Dutch chip equipment maker ASML <ASML.AS> also reported
that its first-quarter orders beat even the most optimistic
expectations.
"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 in London.
World stocks as measured by MSCI <.MIWD00000PUS> gained 1
percent to its highest level since the financial crisis was
coming to a head in September 2008. Its emerging market
counterpart <.MSCIEF> rose more than 1.2 percent.
Japan's Nikkei <> gained 0.39 percent.
GREECE PRESSURE
Greece's debt problems were again in focus, despite the
European Union's rescue plan outlined at the weekend.
The premium investors' demand to buy 10-year Greek
government bonds rather than benchmark German Bunds rose to the
highest level since the euro zone on Sunday inked an aid deal
for Greece. Portuguese bond yields also rose as the EU said
Portugal, also heavy with debt, may need fiscal cuts.
The Portuguese 10-year bond yield <PT10YT=RR> rose about
0.10 percentage point to 4.46 percent <PT10YT=RR>, taking the
yield premium over German Bunds to 1.32 percentage points.
The Greek 10-year bond yield <GR10YT=TWEB> drifted up to
7.2 percent from around 6.9 percent on Tuesday, driving the
spread over Bunds to 4.05 percentage points.
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 euro pared gains against the dollar after rating agency
Moody's 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. []
The dollar surrendered gains against the yen and fell
against the dollar over disappointment that Federal Reserve
Chairman Ben Bernanke in Congressional testimony gave no new
guidance on U.S. interest rates.
At midday in New York, the dollar edged lower against a
basket of major trading-partner currencies, with the U.S.
Dollar Index <.DXY> off 0.48 percent. The euro <EUR=> rose 0.43
percent to $1.3664, and the dollar <JPY=> declined 0.15 percent
to 93.07 yen.
Oil prices rose to trade around $85 a barrel, as a surprise
decline in U.S. crude inventories added to optimism about the
economy after the U.S. data.
U.S. light sweet crude oil <CLc1> rose $2.02, or 2.4
percent, to $86.07 per barrel.
Spot gold prices <XAU=> rose $8.95, or 0.78 percent, to
$1,159.10.
(Additional reporting by Jon Hopkins and Jeremy Gaunt in
London; Editing by Leslie Adler)
