* Euro zone ministers delay 12 bln euro loan to Greece
* Investors grapple with how much risk Greece crisis poses
* U.S. stocks rise but European shares down on unease (Adds close of European markets)
By Herbert Lash
NEW YORK, June 20 (Reuters) - Oil slid and the euro wavered on Monday as risk aversion rose after European finance ministers postponed doling out emergency loans to Greece until the debt-strapped country approves new austerity measures.
Euro zone ministers meeting in Luxembourg gave Greece two weeks to approve stricter austerity measures in return for another 12 billion euros ($17 billion) in aid, piling pressure on Athens to get its ragged finances in order. For more, see: [ID:nLDE75I0FM]
Many asset classes hovered near break-even as investors grappled with whether Greece's fiscal crisis posed systemic risks, as well as the outlook for a flagging U.S economy.
The U.S. dollar rose slightly against a basket of major currencies, with the U.S. Dollar Index <.DXY> up 0.02 percent. The euro
Wall Street moved higher, leading global stock indexes to trade slightly higher, and bond prices erased early gains.
"The sense is that Greece is going to get their money -- there is going to be a little bit of a fight, but the sense is the European Union is not going to let Greece default," said Ken Polcari, managing director at ICAP Equities in New York.
"They are not going to let them go under, so therefore that is holding the market," he said.
Benchmark 10-year U.S. Treasury notes
"Treasury bulls may in fact have gotten a bit over excited in the early trade," said Gennadiy Goldberg, fixed income analyst at 4Cast Ltd. in New York.
The 10-year note has strong technical resistance at 2.88 percent, the lowest yield since the beginning of December and a level tested last week.
A further drop in U.S. bond yields may depend on whether investors fear a higher risk of contagion from the troubled euro zone, or see much weaker economic data.
"The market is having difficulty rallying without bad news from Europe or bad news on the side of the U.S. economy," said Charles Comiskey, head of Treasury trading at Bank of Nova Scotia in New York.
U.S. stocks also came close to a key technical level as the Standard & Poor's 500 Index dipped toward 1,259, its 200-day moving average, which encouraged buyers. A drop below that level would be the first time since September 2010.
"From a technical point of view, the 200-day moving average is where the market gains support," said Jason Ware, senior equity analyst at Albion Financial Group in Salt Lake City.
The Dow Jones industrial average <.DJI> was up 78.41 points, or 0.65 percent, at 12,082.77. The Standard & Poor's 500 Index <.SPX> was up 7.34 points, or 0.58 percent, at 1,278.84. The Nasdaq Composite Index <.IXIC> was up 14.55 points, or 0.56 percent, at 2,631.03.
European shares fell on growing unease about the euro zone debt crisis and a possible downgrade of Italy's credit rating. [ID:nLDE75J1P7]
The pan-European FTSEurofirst 300 <.FTEU3> index of top shares provisionally closed 0.5 percent lower at 1,081.51, hitting its lowest closing level in three months.
"There seems to be a standoff between euro zone finance ministers and Greece and that is causing uncertainty about the next tranche of funds and encouraging risk aversion," said Joshua Raymond, market strategist at City Index.
World stocks measured by the MSCI All-Country World Index <.MIWD00000PUS> rose 0.02 percent after a three-week decline.
U.S. light sweet crude oil
Brent crude
Commodity markets remained fixed on the European debt crisis, led by whether Greece will win more aid.
"An expected short-term agreement will likely enable markets to breathe a little easier and allow commodity complexes to stage a respectable bounce on account of a stronger euro," MF Global analysts said in a note.
"However, any 'solution' for Greece will be a temporary fix at best, as this issue is far too difficult to be wrapped up in a few weeks."
Spot gold prices