(Repeats to more subscribers)
* Euro bounces higher in volatile session
* U.S. stocks rise, led by bank shares
* French banks agree to roll over Greek debt holdings (Updates prices, changes comment)
By Rodrigo Campos
NEW YORK, June 27 (Reuters) - Global stocks rose on Monday and the euro bounced back against the dollar on increasing confidence the Greek parliament will pass an unpopular austerity plan and as French banks outlined an agreement to roll over Greek debt.
Bank shares led U.S. stocks higher after regulators announced global capital rules that were not as harsh as previously feared. For details see [ID:nN1E75Q0N3].
In Europe, however, bank shares slipped even as shares eked out gains.
Greek lawmakers were to begin debating on Monday evening a 28 billion euro ($40 billion) package of measures to increase taxes and cut fiscal spending that is critical to winning a new round of international funding to keep the country afloat. For details see [ID:nLDE75P0BM].
"As long as the Greek Parliament votes yes this week on an austerity plan, stocks are going to go up," said Cary Leahey, economist and managing director at Decision Economics in New York.
French banks, among the most exposed to the Greek debt crisis, have reached an outline agreement to roll over holdings of maturing Greek bonds, part of a wider European plan to avoid sovereign default. French President Nicolas Sarkozy confirmed the breakthrough on Monday and German bankers voiced their interest in the "French model." [ID:nL6E7HR0GU]
The Dow Jones industrial average <.DJI> added 99.11 points, or 0.83 percent, at 12,033.69. The S&P 500 <.SPX> rose 9.53 points, or 0.75 percent, at 1,277.98. The Nasdaq Composite <.IXIC> gained 28.89 points, or 1.09 percent, at 2,681.78.
Financials, which have been pressured by the ongoing euro-zone sovereign debt crisis, were among the day's biggest gainers. The S&P financial index <.GSPF> was up 1.1 percent, and an index of large U.S. bank stocks <.BKX> rose 1.5 percent.
Global stocks as measured by MSCI <.MIWD00000PUS> were up 0.3 percent for the day.
The pan-European FTSEurofirst 300 <.FTEU3> index of top shares closed up 0.05 percent at 1,074.67 points, holding above a support level near 1,070, after hitting their lowest level since mid-March on Friday.
"The good news is the market is not falling any further," said Mike Lenhoff, market strategist at Brewin Dolphin. "If Greece gets parliamentary support I would of thought these markets would fly.
"If it does not," he added, "the banks will lead the market into a tailspin."
Treasury prices fell as news from Europe eased worries over a Greek default, reducing safe-haven demand for U.S. government debt.
Benchmark 10-year U.S. Treasury notes
The euro turned higher against the U.S. dollar as investors became optimistic the austerity vote will pass in Greece's parliament and the euro zone member can avoid a default on its debt.
The euro had been swinging between gains and losses throughout the global session responding to each headline or market rumor, traders said.
Analysts said the euro would be vulnerable to selling on any comments from Greek or other European officials that may cast doubt on the ballot's outcome, although many in the market believe the austerity measures will be approved.
The single currency
"The fate of the euro/dollar hinges on the outcome of the vote," said Kathy Lien, director of currency research at GFT Forex in New York.
"I think the vote will pass or we would be seeing a huge sell off" in the euro.
U.S. crude oil futures
Brent crude futures were 5 cents lower at $105.07 a barrel by 1556 GMT, with the session low at $102.28. U.S. light crude futures fell 44 cents to $90.72 a barrel, after touching lows of $89.61 earlier. (Reporting by Rodrigo Campos; Additional reporting by Edward Krudy and Ellen Freilich; Editing by Leslie Adler)