* World equity index recovers from early falls, Home Depot
buoys U.S. stocks
* Euro recovers from more than two-month low versus dollar
* Brent oil slips as investors worry over global demand
NEW YORK, Nov 13 World stocks rose on Tuesday
after U.S. markets turned higher, fueled by strong results from
home improvement retailer Home Depot, while the euro rebounded
slightly from a more than two-month low against the dollar.
Global share prices had come under pressure earlier after
international lenders clashed over help for Greece, stoking
fears the country's debt crisis could flare up anew.
European shares erased losses as a fresh round of trader
speculation that Spain may be close to asking for a sovereign
bailout fueled appetite for financials.
"Gains on Spain shares are leading Europe higher as rumors
of an imminent acceptance of a bailout are reportedly spreading
once again," Action Economics told clients.
Euro zone finance ministers suggested that Greece, where the
euro zone debt crisis began, should be given until 2022 to lower
its debt-to-GDP ratio to 120 percent. But International Monetary
Fund chief Christine Lagarde insisted the existing target of
2020 should remain.
"We clearly have different views. What matters at the end of
the day is the sustainability of Greek debt so that country can
be back on its feet," Lagarde said late on Mo nday, in an
unusually public airing of a disagreement that has rumbled for
weeks behind closed doors.
The MSCI world equity index rose 0.15
percent to 323.28, having hit its lowest point since early
On Wall Street, the Dow Jones industrial average rose
52.19 points, or 0.41 percent, at 12,867.27. The Standard &
Poor's 500 Index was up 6.43 points, or 0.47 percent, at
1,386.46. The Nasdaq Composite Index was up 1.74 points,
or 0.06 percent, at 2,906.00.
The FTSEurofirst 300 .FTEU3 provisionally closed up 5.39
points, or 0.5 percent, at 1,099.74, bouncing off a low of
1,086.37. Spain's IBEX index .IBEX rallied 1.7 percent,
meanwhile, while its bond yields eased slightly ES10YT=RR.
Dow component Home Depot Inc climbed 4.3 percent to
$63.76 after reporting earnings that beat expectations and
raising its outlook. Rival retailer Lowe's Companies
gained 0.5 percent to $32.14.
The euro slid as low as $1.2660 on Reuters data, the
weakest since Sept. 7, before recovering to $1.2713, up slightly
on the day.
The euro zone common currency trimmed losses after a German
newspaper said Germany wants to bundle Greek aid into a single
payment of more than 44 billion euros.
Traders interpreted the report, which cited government
sources, as a sign that the euro zone's paymaster was eager to
see a deal done. Asked about the report, a German finance
ministry spokeswoman said no final decision had been made on
But analysts say the euro remained vulnerable to uncertainty
about Greece after euro zone finance ministers on Monday held
off disbursing more aid to the debt-ridden country. Another
Eurogroup meeting would take place on Nov. 20.
"There is quite a long list of worries at the moment, with
the overall backdrop risk-negative," said Vassili Serebriakov,
foreign exchange strategist at BNP Paribas in New York.
"There is no Greece resolution and it looks like some of the
critical details for receiving more aid have been pushed to the
end of this month," he said.
Brent crude oil lost 75 cents to $108.31 a barrel,
falling for a second day on worries about demand growth in a
well-supplied market as the United States and Europe grapple
with fragile economies.
U.S. crude futures gained 12 cents to $85.69.
The International Energy Agency, which advises
industrialized nations on energy policy, issued a bearish report
on Tu esday, showing improving supply, more limited increases in
demand and rising global inventories.
Spot gold was slightly up at $1,728.64 an ounce.
Concern about Greece and the U.S. "fiscal cliff" drove
safe-haven U.S. Treasury debt higher. The benchmark 10-year U.S.
Treasury note was up 3/32, with the yield at 1.6029 percent
Investors fretted about political brinkmanship by Democrats
and Republicans over $600 billion in spending cuts and tax hikes
due to come into effect early next year that could send the
economy back into recession.