* Euro bounces higher in volatile session
* French banks agree to roll over Greek debt holdings
* U.S. bank shares up after global capital rules announced (Updates prices)
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 were among top gainers in U.S. markets, which rebounded following three days of losses, 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 equity markets 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. 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> was up 108.45 points, or 0.91 percent, at 12,043.03. The S&P 500 <.SPX> was up 10.49 points, or 0.83 percent, at 1,278.94. The Nasdaq Composite <.IXIC> was up 32.63 points, or 1.23 percent, at 2,685.52.
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 1.3 percent.
On Saturday, global banking regulators in Basel agreed that the biggest banks globally will need to boost their ratios of common equity to risk-weighted assets by up to 2.5 percentage points, less than the 3 percentage points some investors had feared. For details, see [ID:nLDE75O053]
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 after hitting their lowest level since mid-March on Friday.
Treasury prices fell as the 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
EURO UP, OIL WEAK
The euro rallied 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 on the Greek vote, traders said.
"I think the vote will pass or we would be seeing a huge sell off," said Kathy Lien, director of currency research at GFT Forex in New York. "The fate of the euro/dollar hinges on the outcome of the vote."
The single currency
U.S. crude oil futures
Brent crude futures were 71 cents higher at $105.83 a barrel by 1721 GMT, with the session low at $102.28. U.S. light crude futures fell 65 cents to $90.51 a barrel, after touching lows of $89.61 earlier. (Reporting by Rodrigo Campos; Additional reporting by Edward Krudy, Nick Olivari and Ellen Freilich; Editing by Leslie Adler)