* World stocks weaker but Wall Street set for gains
* Obama plan, Greece worries weigh
* Dollar weaker
By Jeremy Gaunt, European Investment Correspondent
LONDON, Jan 25 (Reuters) - World stocks were flat on Monday, lifted from earlier losses by prospects for a higher Wall Street and an easing of concern about Greece's debt crisis.
U.S. stocks looked set to open higher dragging up sentiment in Europe and potentially recouping some of last week's fall, which included the worst three-day slide in 10 months.
The dollar was generally weaker with signs that U.S. Federal Reserve Chairman Ben Bernanke was moving closer to being re-confirmed in his job lifting higher-yielding currencies.
World stocks as measured by MSCI were flat with a roughly 1.75 percent loss so far this year. The FTSEurofirst 300 was also flat after sustaining early losses. Japan's Nikkei closed down three-quarters of a percent.
"Markets have had an unsettled start to the year, buffeted by a variety of risks," Barclays Capital asset allocator Tim Bond wrote in a note. But he added: "The overall background liquidity and growth environment is still very constructive."
Greece's first bond issue of the year received strong demand as the price offered a hefty premium, holding out the hope that Greece could sooth concerns it can raise financing. Its 5-year syndicated bond issue of up to 5 billion euros ($7.07 billion) attracted some 16 billion euros in bids.
"A successful takedown of this deal is in our view pivotal for a change in the current bearish momentum in Greek spreads," said Wilson Chin, a bond analyst at ING in Amsterdam.
The Greek/German 10-year bond yield spread narrowed after the news.
BERNANKE AGAIN
The dollar slipped against the euro and higher-yielding currencies after broad gains last week.
Reports that embattled Federal Reserve Chairman Ben Bernanke was edging closer to winning confirmation to serve a second term also quelled markets, tarnishing the dollar's safe-haven appeal.
Markets have been fretting since late last week over whether Bernanke would be approved for the job.
Several key senators have announced their opposition to Bernanke's reappointment, but the Fed chief appeared closer to winning support after the Senate's Republican leader predicted he would be confirmed.
The euro pulled further away from a near six-month low hit against the dollar last week. It was at $1.4173.
"The market was very volatile last week and we saw a big squeeze on the euro, so there's been some consolidation today," said Marcus Hettinger, global currency strategist at Credit Suisse in Zurich.
Benchmark euro zone government bond yields rose. (Additional reporting by Naomi Tajitsu; editing by Ron Askew) (To read Reuters Global Investing Blog click on http://blogs.reuters.com/globalinvesting; for the MacroScope Blog click on http://blogs.reuters.com/macroscope; for Hedge Hub click on http://blogs.reuters.com/hedgehub)