Maybe you are looking for word-diff
--word-diff[=<mode>] 
Show a word diff, using the <mode> to
  delimit changed words. By default,
  words are delimited by whitespace; see
  --word-diff-regex below. The <mode> defaults to plain, and must be one of:
color 
Highlight changed words using only
  colors. Implies --color.   
plain 
Show words as [-removed-] and
  {added}. Makes no attempts to escape
  the delimiters if they appear in the
  input, so the output may be ambiguous.
porcelain 
Use a special line-based format
  intended for script consumption.
  Added/removed/unchanged runs are
  printed in the usual unified diff
  format, starting with a +/-/
none 
Disable word diff again. 
Note that despite the name of the
  first mode, color is used to highlight
  the changed parts in all modes if
  enabled.
http://git-scm.com/docs/git-diff