GLOBAL MARKETS-Hopes of Greece aid plan lift stocks, euro

* German, French leaders hint at aid plan for Greece

* Reduced anxiety boosts stocks, euro; pressure bonds

* Oil falls, gold firms as risk aversion remains elevated (Updates market action, changes dateline, previous London)

By Richard Leong

NEW YORK, June 17 (Reuters) - The euro rose and Wall Street stocks opened higher on Friday after words from the heads of France and Germany hinted at an aid deal to save Greece from a default.

Speculation that the heavily-indebted euro zone nation could receive 120 billion euros before it runs out of cash this summer offered a measure of comfort to investors in a week of exceptional volatility across all financial markets.

Investors, less nervous, reduced their holdings of low-risk government bonds. However, a drop in oil prices and the firmness of gold and the Swiss franc -- traditionally seen as a safe haven currency -- signaled risk aversion remains at elevated levels.

German Chancellor Angela Merkel said on Friday that Germany and France wanted a quick solution to the impasse over a new aid package for Greece.

French President Nicolas Sarkozy chimed in, saying that 'there was no time to lose', suggesting that a deal to rescue Greece could be reached quickly. See [ID:nPISHHE7SL]

"After a couple of volatile sessions earlier this week, the market is taking Sarkozy's words as comfort and that is translating into a rebound this morning," said Andre Bakhos, director of market analytics at Lek Securities in New York.

On Wall Street, the Dow Jones industrial average <.DJI> was up 82.95 points, or 0.69 percent, at 12,044.47. The Standard & Poor's 500 Index <.SPX> was up 9.15 points, or 0.72 percent, at 1,276.79. The Nasdaq Composite Index <.IXIC> was up 23.98 points, or 0.91 percent, at 2,647.68.

The FTSEurofirst 300 <.FTEU3> index of top European shares was up 0.2 percent at 1,086.32 points, but has shed over one percent this week.

The MSCI world equity index <.MIWD00000PUS> was last up 0.7 percent, rebounding from a three-month low of 326.01 struck earlier in the session.

Optimism over another lifeline for Greece also boost Europe's single currency after hitting a three-week low against the dollar on Thursday. The euro was up 0.5 percent on the day at $1.4278, paring earlier losses in volatile trade.

The Swiss franc, which strengthens with risk aversion, was firm against the dollar at $0.8475.

The rebound in stocks and the euro came primarily at the expense of bonds.

September U.S. Treasury and German Bund futures fell 17/32 and 41 basis points respectively after setting contract highs on Thursday.

Spot gold last traded at $1,529.04 an ounce, compared with $1,528.35 in New York late Thursday. The precious metal is heading for its second consecutive weekly drop.

In oil trading, U.S. crude futures were down 1.5 percent at $93.50 a barrel, while August Brent crude in London was down 60 cents at 82 cents at $113.21. (Additional reporting by Rodrigo Campos in New York; Anirban Nag, Nia Williams, Atul Prakash and Marius Zaharia in London, Editing by Chizu Nomiyama)