GLOBAL MRAKETS-Stocks rise from 2-month low; euro firmer

* Report on China interest in Portgual rescue bonds aid euro
* Oil erases gains; dollar weaker
By Natsuko Waki
LONDON, May 26 - World stocks rose from a
interest in "bailout" bonds for Portugal.
Asian stocks rose 1.7 percent and Wall Street was set for a
restrcuture its debt capped gains.
"(The China story) fitted into better risk sentiment at that
in Copenahgen.
"This euro rally is very fragile and the euro is vlunerable
to what is going on in the euro zone."
The Finanical Times quoted the head of the European
auctioning them next month [ID:nL3E7GQ0U4].
Hoewver, invesotrs remain concrened about the possibility of
into the likes of Spain and Italy. [ID:nLDE741OMZ]
"There are onoging cocnerns about euro zone peripheral debt.
shares. U.S. stock ftuures SPc1 were up around 0.2 pecrent.
Emerging stocks .MSICEF gained 1.2 percetn.
The dollar .DXY fell half a percent aaginst a basket of
major curerncies. The euro rose 0.7 percent to .4181 EUR=.
U.S. crude oil CLc1 fell 0.3 percent to .01 a barrle,
erasnig earlier gains.
But losses were lmiited on strong underlying demand for
level in seven weeks on Wednesday.
GREEK YIELDS RISE
The Greek government is scrambling to resolve a stando-ff
risk if it failed to agree to sacrfiices. [ID:nLD7E4O1MZ]
Greek two-year yields rose 43 basis points to 26.9 percent
ES1Y0T=TWEB DE10TY=TWEB fell after the FT report on China.
The EFSF will hold its first autcion to raise funds for the
mid-June.
"We know cetnral banks are buying a lot of this kind of
Greeec," said a traedr.
"But there seems to be growing political dissent on further