GLOBAL MARKETS-Greek vote boosts risk appetite; stocks rise

* Greece passes austerity plan, easing default fears

* World stocks rise for 3rd day, US crude gains 2 percent

* Greek vote boosts risk appetite

By Manuela Badawy

NEW YORK, June 29 (Reuters) - World stocks advanced for the third straight day and oil prices jumped on Wednesday after Greece's parliament approved the first of two austerity measures aimed at preventing the country from going bankrupt.

Safe-haven assets lost some of their appeal as Greek Prime Minister George Papandreou won a key battle to ensure the disbursement of a 12 billion euro tranche from a bailout program the country needs to avoid default next month.

"Certainly the fear that Greece is going to default now has subsided," said Ken Polcari, managing director of ICAP Equities in New York. "Although it is still not a done deal -- but the fact is, it is certainly moving along, so that is obviously positive."

Greece's government must now win approval on Thursday for legislation detailing specific implementation measures for its 28 billion euro austerity package. Wednesday's vote clears a major hurdle in its bid for international funding to avoid a default in mid-July. For more, see: [ID:nL6E7HT0PS]

"Risk seems to be back in the market after weeks of risk-off. That's helping the equities move higher," said Eric Marshall, director of research at Hodges Capital Management in Dallas.

The MSCI All-Country World Index <.MIWD00000PUS> climbed 1.34 percent in its third session of gains. In Europe, the FTSEurofirst 300 index <.FTEU3> of top shares hit its highest close in two weeks, jumping 1.65 percent.

Major Wall Street indexes were higher on the Greek vote and on a mildly encouraging U.S. report on pending home sales. The S&P 500 index is up more than 2 percent this week.

Pending home sales rose a stronger-than-expected 8.2 percent in May, but a glut of unsold properties remained a drag on the housing market. [ID:nN1E75R1XG]

The Dow Jones industrial average <.DJI> was up 59.45 points, or 0.49 percent, at 12,248.14. The Standard & Poor's 500 Index <.SPX> was up 7.97 points, or 0.61 percent, at 1,304.64. The Nasdaq Composite Index <.IXIC> was up 6.71 points, or 0.25 percent, at 2,736.02.

U.S. crude oil jumped $1.93, or 2.08 percent, to $94.82 per barrel as the Greek parliament vote eased fears that a possible Greek default would derail the global economic recovery and after industry data showed big draws in U.S. crude and gasoline stocks.

The euro was up 0.40 percent at $1.4426 against the dollar and near the session peak of $1.4447 on expectations the next Greek vote will pass on Thursday, but concerns over whether the government can implement the measures could limit gains.

U.S. Treasuries continued their sell-off into a third day, and yields rose to their highest in a month after a $29 billion auction of seven-year notes. It was the third of three auctions this week, with new coupon issuance totaling $99 billion.

Seven-year notes fell 22/32 in price to yield 2.42 percent, the highest since the end of May after the auction.

The benchmark 10-year U.S. Treasury note was down 23/32, its yield at 3.1192 percent. The 2-year U.S. Treasury note was down 1/32, yielding 0.485 percent. The 30-year U.S. Treasury bond was down 20/32, with the yield at 4.3634 percent.

Spot gold traded up $8.49, or 0.57 percent, to $1508.90, just below an intraday high of $1,512.31, countering losses earlier in the week that took the price below $1,500. COMEX gold rose 0.61 percent to $1,509.4.

Gold usually gains in periods of greater investor worry, but the Greek debt crisis and its impact on the euro have caused bullion to act less as a safe-haven asset and more as a commodity.

Copper hit its highest in nearly two months with three-month copper on the London Metal Exchange closing up 2.7 percent at $9,320 a tonne from $9,072.50 at the close on Tuesday, its highest since May 4, aided by buying related to technical factors.

Demand for the safety of German debt receded, at least temporarily, after the approval of the Greek austerity plan.

The cost of insuring against a Greek default was unchanged after the austerity package was passed, and ING models showed investors still expect to receive only 60 percent of the face value of any three-year Greek bonds they hold to maturity.

The spread between Greek government debt and German benchmark Bunds narrowed 9.5 basis points to 13.614, from 13.709 percent on Tuesday. (Additional reporting by Chuck Mikolajczak, Angela Moon, Daniel Bases and Amanda Cooper; Editing by Dan Grebler and Padraic Cassidy)