* Global stocks rise after Greek rescue boosts sentiment
* Euro gains on Greek aid agreement but caution remains
* Oil rises above $85 a barrel after big China demand
* Bond prices gain in anticipation of poor company results (Updates with close of European markets)
By Herbert Lash
NEW YORK, April 12 (Reuters) - Global stocks inched higher on Monday after the euro zone detailed the amount of aid it is willing to offer Greece, but the euro and Greek borrowing costs pared initial gains after Germany expressed caution about the rescue package.
The broadly stronger euro pushed gold to near four-month highs and copper rose to a 20-month high before a spokesman for the German Finance Ministry said European leaders would need to activate any Greek aid -- showing disagreement over how funds would be provided. For details see: [ID:nBAT005288]
However, the safety net for Greece reached over the weekend whetted investors' appetite for riskier assets, lifting Asian shares to 22-month highs and helping keep U.S. stock indexes slightly above break-even.
Euro zone ministers approved a 30 billion euro ($40.5 billion) aid package of loans, which Greece can tap if needed, with at least 10 billion euros also expected from the International Monetary Fund. [ID:nLDE63A0BO]
The euro
European shares ended flat, with banks gaining after the Greek rescue package helped soothed some nerves over Athens' debt problems, while miners fell as metals prices retreated from earlier highs. [ID:nLDE63B212]
"There are chances of a certain easing of fears. However, in the medium term, any real improvement in the tensions within the European Monetary Union needs to see the underlying causes being addressed," said Tammo Greetfeld, equity strategist at UniCredit.
The FTSEurofirst 300 <.FTEU3> index of top European shares closed flat at 1,101.44 points after rising to 1,105.08 -- its highest in more than 18 months.
But overall investor sentiment remained positive. The CBOE Volatility Index <.VIX>, which measures the implied volatility of the S&P 500 Index <.SPX>, hit a 33-month intraday low.
The Australian dollar briefly rose to its highest level in five months and Greek government bond yields, which move in the opposite direction of their price, slid across the curve.
The MSCI All-Country World Index <.MIWD00000PUS> advanced 0.4 percent to an 18-month high.
U.S. stocks rose in anticipation that first-quarter
earnings will be solid. Aluminum company Alcoa Inc
Investors are anxious to see if earnings will be enough to drive stocks higher given their recent rally.
The S&P 500 rose to within 2 points of 1,200, a level seen as an area of technical resistance. The Dow traded just above 11,000, which it briefly passed on Friday for the first time since September 2008.
"Earnings are going to be very good on both cost and revenues and if you're ever going to celebrate, it would be right now," said Jim Awad, managing director at Zephyr Management in New York. "If (the market) doesn't, it means it's already priced in."
Before 1 p.m., the Dow Jones industrial average <.DJI> was up 17.76 points, or 0.16 percent, at 11,015.11. The Standard & Poor's 500 Index <.SPX> was up 2.65 points, or 0.22 percent, at 1,197.02. The Nasdaq Composite Index <.IXIC> was up 3.67 points, or 0.15 percent, at 2,457.72.
U.S. Treasury debt prices rose as bond investors questioned whether corporate earnings would be strong enough to justify current share price levels and lingering concerns about how the Greece bailout would be implemented and if it would work. [ID:nN12439702]
The euro zone's pledge to aid Athens failed to address longer-term challenges of solvency for debt-stricken Greece, said Mohamed El-Erian, chief executive and co-chief investment officer of Pacific Investment Management Co. [ID:nN12189741]
The benchmark 10-year U.S. Treasury note
Oil prices inched up above $85 a barrel, as the euro strengthened against the dollar and data showed a big jump in Chinese crude imports. [ID:nN12192169]
Chinese crude imports 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.
U.S. light sweet crude oil
Spot gold prices
The dollar was down against a basket of major currencies, with the U.S. Dollar Index <.DXY> down 0.59 percent at 80.615.
Against the yen, the dollar