* FTSEurofirst 300 up 0.2 pct after 3-month lows
* Focus on Greek austerity vote due this week
* Technology shares among top gainers; chemicals fall
By Atul Prakash
LONDON, June 27 (Reuters) - European equities were steady on Monday, ahead of a crucial Greek vote on unpopular austerity measures, after stronger technology stocks helped a key index recover from the lowest level in more than three months.
The Euro STOXX 50 volatility index , one of Europe's main barometers of sentiment, hit a 14-week high, indicating a fall in appetite for riskier assets such as equities.
Tech shares rose 0.7 percent, led higher by ASML Holding as Natixis raised its recommendation on the stock to "buy" from "neutral". ASML was up 3.1 percent.
At 0900 GMT, the FTSEurofirst 300 index of top European shares was up 0.2 percent at 1,076.35 points after falling to 1,071.18, the lowest since mid-March.
Last week, the index fell 1.2 percent, down for an eighth straight week, on concerns about Greece's debt crisis and the pace of global economic recovery.
The Greek parliament on Monday begins a debate on an austerity plan that international lenders are demanding to be approved this week to avert the threat of bankruptcy. Greece's conservative opposition has rejected European Union leaders' calls for national unity, forcing Prime Minister George Papandreou to rely on his slim parliamentary majority.
"If the government wins, there would be some bounce in shares. But it does not change the long-term story. Greece's finances are pretty unsustainable and until it starts dealing with its ability to raise funding internally by more efficient tax collection, investors will continue to be nervous," said Felicity Smith, fund manager at Bedlam Asset Management which manages $700 million.
"Investors are more concerned about its effect on the banking system. If there is a disorderly default, then there is a real risk of another Lehman-style shock and its knock-on effects on other peripheral euro zone countries," said Smith, referring to the collapse of the U.S. investment bank in 2008.
Greek banks were flat after falling more than 1 percent earlier in the session. The Thomson Reuters Peripheral Eurozone Banks index was up 1.2 percent after early losses, but is still down about 17 percent from its level two months ago on concerns about the debt crisis.
Piraeus Bank
"Investors are highly cautious," said Keith Bowman, equity analyst at Hargreaves Lansdown. "The Greek austerity vote is certainly a critical issue for the markets."
"If it gets passed, investors will breathe a sigh of relief. But I don't think they necessarily believe that the Greek situation is something we can just put behind us. There is still a feeling that it would just be delaying the issue for another day."
Without approval for the measures, the EU and International Monetary Fund say they will not disburse the fifth tranche of Greece's 110 billion-euro bailout programme. Athens needs 12 billion euros to pay its bills next month and avert the euro zone's first sovereign default.
The difference between 10-year Greek bond yields and German
Bunds widened. Debt of other heavily indebted countries also
came under pressure and the 10-year Italian/German yield spread
Chemical shares featured among top decliners, with the sector index down 0.9 percent. Akzo Nobel NV led the sector lower after falling 8.3 percent on a profit warning.
Investors awaited key economic data this week for hints whether a slowdown in the U.S. economy is temporary or the start of a trend. The Institute for Supply Management's survey of U.S. manufacturing, often a leading indicator of broader economic activity, will be released on Friday.
Economists expect the index will drop to 51.9 in June following a steep seven-point dive to 53.5 in May, getting ever closer to the 50 level that separates growth from contraction. ============================================================ For rolling updates on what is moving European shares please click on ============================================================ For pan-Europeanmarket data and news, click on codes in brackets: European Equities speed guide................... FTSEurofirst 300 index.............................. STOXX Europe index.................................. Top 10 STOXX sectors........................... Top 10 EUROSTOXX sectors...................... Top 10 Eurofirst 300 sectors................... Top 25 European pct gainers....................... Top 25 European pct losers........................
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