* World stocks fall after large Wall Street losses
* Obama plan, Greece worries weigh
* Dollar weaker
By Jeremy Gaunt, European Investment Correspondent
LONDON, Jan 25 (Reuters) - World stocks added to the
previous week's fall on Monday, weighed down by Wall Street
losses, uncertainty over U.S. bank plans and concern that
Greece's debt crisis could spread.
The dollar, which tends to rise in such circumstances, 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.
Wall Street stocks capped their worst three-day slide in 10
months on Friday on fears that President Barack Obama's plan to
limit risk-taking by banks would undermine profits in the
financial sector.
U.S. stock futures were higher on Monday, however,
suggesting that the sentiment may shift during the day and
helping lift European stocks off their lows.
World stocks as measured by MSCI <.MIWD00000PUS> were down
0.2 percent for a near 2 percent loss so far this year. The
FTSEurofirst 300 <> lost 0.2 percent and 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 was expected to open the order book for its 5-year
syndicated bond issue of up to 5 billion euros ($7.07 billion).
How it fares could be crucial in deciding whether market jitters
over Greek debt and possible contagion continue mounting.
Last week saw early signs of concerns spreading to Spain and
Portugal.
BERNAKE 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 $1.4150 <EUR>.
"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 with
investors focusing on the Greek syndicated bond sale.
(Additional reporting by Naomi Tajitsu)
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