Greece aid lifts euro; stocks hit 18-month high
Global equities measured by the MSCI All-Country World Index advanced 0.4 percent to 315.20 points, after hitting a 18-month high of 315.59. Earlier, Asian shares outside Japan hit 22-month highs and Tokyo's Nikkei average .N225 rose 0.4 percent. "The package is big enough and the term seems reasonable. For the market it means Greece will never have to panic sell and the market can't force Greece into a corner and that changes complexion of Greek bets and the euro in the short term at least," said Daragh Maher, deputy head of global foreign exchange research at Calyon. "It's generally positive for risk because you've taken out one of the big banana skins in terms of macroeconomic risk. (But) Greece still face difficulties and other euro zone countries face difficulties. It's hard to create medium-term bullish story for the euro." The euro was up 0.04 percent against the dollar at $1.3628, after hitting a high of 1.3691. The dollar .DXY fell 0.8 percent against a basket of major currencies.

GREEK PREMIUM FALLSGreece's borrowing costs eased to their lowest levels in a week while other riskier assets like commodities were also in demand. Yields on "safe haven" German Bunds and U.S. Treasuries rose. Euro zone finance ministers approved a 30-billion-euro ($40 billion) emergency aid mechanism for debt-plagued Greece on Sunday but said Athens had not requested it be activated yet. Together with at least 10 billion euros expected from the International Monetary Fund in the first year, it could add up to the biggest multilateral financial rescue ever attempted. Greece's share benchmark .ATG surged 4.9 percent, while the pan-European FTSEurofirst 300 .FTEU3 gained 0.2 percent, helped by stronger bank shares. Swiss bank UBS (UBSN.VX) was among the top gainers in Europe, up 2.9 percent after it delivered its highest pre-tax profit since the start of the credit crisis and said withdrawals were substantially lower at all divisions. 

The premium investors demand to hold Greek government bonds rather than benchmark Bunds fell to 367 basis points, its lowest in a week, versus 409 basis points at Friday's settlement close. "It's a question of how far Greek government debt can normalize now," said a bonds trader in London .Athens will test market appetite for its debt with an auction of 1.2 billion euro Treasury bills on Tuesday and is still planning a dollar bond. Yields on 10-year benchmark U.S. Treasuries were up 4 basis points at 3.918 percent, while those on 10-year Bunds were up 6 basis points at 3.222 percent. Oil prices rose above $85 a barrel, buoyed by a drop in the dollar and bullish data that showed China crude imports jumping to their second-highest monthly level in March. Offshore Chinese yuan forwards edged down against the dollar after Beijing reported its first monthly trade deficit in six years, which may decrease expectations for a rise in the yuan.

Oil rises above $85 on weak dollar, China data
Oil prices rose above $85 a barrel on Monday, buoyed by a drop in the U.S. dollar and bullish data that showed Chinese crude imports jumping to their second-highest monthly level in March. Euro zone finance ministers approved a giant 30 billion euro ($40 billion) emergency aid mechanism for debt-stricken Greece on Sunday but stressed Athens had not requested the plan be activated yet. The news drove the euro to its highest levels in nearly a month in Asian trade, while the dollar index fell 0.8 percent against a basket of currencies on Monday. U.S. crude for May delivery was up 60 cents to $85.52 a barrel by 3:38 a.m. ET, trimming an earlier 79 cent gain. London Brent crude rose 80 cents to $85.63. A weaker dollar can support oil prices, making commodities denominated in dollars cheaper for other currency holders. "Two factors are supporting oil: the weaker dollar after the support agreed for Greece, and the very strong import data from China," said Eugen Weinberg, commodity analyst at Commerz bank. "China is the most important dynamo behind the movement of commodities at the moment as it is the biggest source of demand," he added. China's strong demand for oil and copper showed no let-up in March, with imports rising rapidly despite higher prices as factories returned to work in earnest after the long Lunar New Year holidays.

TARGET $90?

Crude imports by China jumped 13.8 percent from the previous month and reached 4.95 million barrels a day, preliminary data released by the General Administration of Customs showed. March's oil import levels were just a touch below December's record 20.9 million tonnes. Barclays Capital analysts said oil prices had convincingly broken out of the $70-$80 a barrel range and could rise toward $90 as the global economy regained strength. "The follow-through in the recovery in coming months may well be one element behind the creation of a base for a further shift up in prices," Barclay's analysts led by Paul Horsnell said in a report. "The very limited recent increases in prices seem justified; indeed, they are perhaps remarkably modest given the pace of global recovery over the past two quarters in particular. "In a sign of upbeat sentiment over oil prices, open interest positions were heavier at the NYMEX May $90 call option and the $80 and $75 put options, according to IHI's data on Friday. Separately, money managers extended net crude oil long positions on the New York Mercantile Exchange to a record 186,732 in the week to April 6, up from 169,478 in the previous week, the Commodity Futures Trading Commission said on Friday.

Stock futures signal gains ahead of Alcoa
Stock index futures pointed to a higher open on Wall Street on Monday, helped in part by easing worries over sovereign debt after euro zone finance ministers approved a massive aid plan for debt-stricken Greece. futures for the S&P 500 were up 0.18 percent, Dow Jones futures were up 0.31 percent and NASDAQ 100 futures were up 0.21 percent. All eyes will be on aluminum major and Dow component Alcoa (AA.N), due to kick off the first-quarter reporting season on Monday. Euro zone finance ministers approved a 30 billion euro ($40 billion) emergency aid plan for Greece on Sunday, but stressed Athens had not requested the plan be activated yet. UBS (UBSN.VX) said its first-quarter pre-tax profit would be at least 2.5 billion Swiss francs ($2.33 billion) and said client withdrawals had slowed at all its business divisions. Mining shares will be in the spotlight after copper reached a 20-month high as the dollar lost ground, and as hopes of bidding war for Australian miner Macarthur Coal (MCC.AX) boosted the company's shares by 10 percent, with talk that Xstrata (XTA.L) may jump in the brawl. Also on the M&A front, Mirant Corp (MIR.N) agreed to take over rival RRI Energy (RRI.N), creating one of the largest U.S. independent power producers and cutting costs as they deal with weak electricity prices that have challenged the entire industry. The dollar fell on Monday against the euro, which leapt to its highest in nearly a month on Monday, surging 1 percent on the dollar and yen as investors who had sold it scrambled to buy it back after euro zone finance ministers agreed a rescue package for Greece. Oil prices rose above $85 a barrel on Monday, buoyed by a drop in the U.S. dollar and bullish data that showed Chinese crude imports jumping to their second-highest monthly level in March. European stocks were up 0.2 percent in morning trade, led by banks such as BNP Paribas (BNPP.PA) and Banco Santander (SAN.MC), as fears over Greece's debt problems eased following the EU rescue package .EU, while Japan's Nikkei average gained 0.4 percent, with ad agency Dentsu (4324.T) surging on improved earnings guidance. Stocks rose on Friday with the Dow surpassing 11,000 for the first time in a year-and-a-half after Chevron's upbeat outlook and wholesale inventories data reinforced bets on an improving economy. The Dow Jones industrial average .DJI gained 70.28 points, or 0.64 percent, to end at 10,997.35. The Standard & Poor's 500 Index .SPX rose 7.93 points, or 0.67 percent, to 1,194.37. The NASDAQ Composite Index .IXIC added 17.24 points, or 0.71 percent, to 2,454.05.