* Global equities rally on growing optimism over Europe
* Treasuries fall on easing of Greek debt default fears
* Euro slips on profit-taking after this week's rally (Updates prices)
By Herbert Lash
NEW YORK, Sept 16 (Reuters) - Global equities rose for a fourth straight day on Friday, but the euro slid as hope Europe is finally getting a grip on the region's debt crisis was offset by lingering fears Greece is still at risk of default.
Gains in global equity markets suggested risk aversion has dissipated, but a sharp decline in French and Italian banking stocks, along with the euro's slide, indicated caution lingers despite encouraging efforts to resolve the debt crisis.
The announcement on Thursday that the world's leading central banks will boost short-term dollar funding for European banks facing a dollar shortage eased fears that Greece's fiscal woes might bring down the financial system in Europe.
No one, however, suggested the crisis was fully resolved.
"There is still a lot of open-ended issues out there, which means this situation will remain pretty fluid," said Mark Luschini, chief investment strategist at Janney Montgomery Scott in Philadelphia.
"All of what we just gained in the last five trading sessions could be given back," Luschini said, referring to the string of gains on Wall Street, surpassing by a day the rally in European stock markets.
The Dow Jones industrial average <.DJI> was up 55.44 points, or 0.48 percent, at 11,488.62. The Standard & Poor's 500 Index <.SPX> was up 3.14 points, or 0.26 percent, at 1,212.25. The Nasdaq Composite Index <.IXIC> was up 5.84 points, or 0.22 percent, at 2,612.91.
MSCI's all-country world equity index <.MIWD00000PUS> rose 0.6 percent, while the FTSE Eurofirst index <.FTEU3> of top regional European shares closed up 0.6 percent at 937.85.
A rally in banks stocks lost steam, however, and the STOXX
Europe 600 Banks index <.SX7P> finished up 0.3 percent after
paring earlier strong gains. BNP Paribas
U.S. bank stocks also slid, with the KBW Bank index <.BKX> off 1.2 percent.
Next week's meeting of the Federal Reserve came into view, amid speculation policy makers might provide further stimulus to the economy.
"The news yesterday that central banks are offering dollar liquidity to European lenders is regarded as being the start of an accelerated process in addressing the debt crisis," said James Dailey, portfolio manager of TEAM Asset Strategy Fund in Harrisburg, Pennsylvania.
"With the Fed meeting next week, (the ECB news) sort of served as a threshold. Investors are now thinking that we have entered a process towards additional monetization."
Markets shrugged off a survey that showed even though U.S. consumer sentiment inched up in early September, Americans remained gloomy about the future, with a gauge of expectations falling to the lowest level since 1980. [ID:nS1E78E0P2]
U.S. Treasury securities edged higher, reversing losses after gains in the major U.S. stock indexes eased.
The benchmark 10-year U.S. Treasury note
Brent crude traded near break-even after earlier gains.
The November contract for Brent crude
U.S. crude
The euro eased as investors locked in profits after this week's rally. [ID:nS1E78F0EY]
The euro