GLOBAL MARKETS-Stocks rise on Greek move; euro flat

* Greece passes austerity measures, boosting stocks
* Caution about Greek bailout prospects curbs euro gains
* Safe-haven US, German government bonds edge up

By Walter Brandimarte
NEW YORK, Feb 13 (Reuters) - World stocks rose
on Monday after Greece's parliament passed drastic
austerity measures to avoid a messy debt default, but doubts
about whether European leaders will support Athens with a new
rescue package curbed an initial euro rally.
Key Wall Street indexes were about half a percent higher and
U.S. crude oil prices topped $100 a barrel, after Greek
lawmakers on Sunday backed sweeping budget cuts in exchange for
a 130 billion euro bailout from the European Union and the
International Monetary Fund.
Concerns about whether nearly-bankrupt country will be able
to fulfill its tough austerity promises made some investors
cautious, keeping demand steady for safe-haven U.S. Treasuries
and putting a lid on euro gains.
"You got that knee-jerk positive reaction (in the euro), and
that's ultimately starting to fade right now," said Brian Dolan,
chief currency strategist at Forex.com.
He added that investors are worried that Greece may fail to
"meet the targets it's setting itself, and that we're going to
be seeing a replay of this several months down the road."
The euro was practically flat against the dollar at
$1.320 after rising to as much as 1.328 earlier. Against the yen
, it was 0.1 percent lower at 102.32.
U.S. stocks were led higher by shares of banks, however, one
session after the S&P 500 posted its largest decline in the
year.
"That the (Greek) deal was approved really reduces a lot of
the tension over the euro zone, but it was expected and on a
short-term basis we're very done to the upside," said Yu-Dee
Chang, chief trader of ACE Investments in McLean, Virginia.
"That's why we went up and then backed off this morning. I'm
cautious because there could be a short-term correction."
The Dow Jones industrial average gained 57.14 points,
or 0.45 percent, to 12,858.37, while the Standard & Poor's 500
Index was up 7.04 points, or 0.52 percent, at 1,349.68.
The Nasdaq Composite Index rose 20.12 points, or 0.69
percent, to 2,924.00.
World stocks climbed 0.6 percent, according to the MSCI
All-Country World Index ; while Europe's
FTSEurofirst 300 index of top shares was up 0.7
percent.
U.S. crude oil rose 1.3 percent to $100.02 a barrel.

INVESTORS CAUTIOUS
Bond investors remained cautious, however. Before Greece can
secure a second rescue and get the 14.5 billion euros it needs
to meet debt repayments due on March 20, the Greek government
must convince a skeptical euro zone that it would stick to the
terms of the deal.
The focus is now on Wednesday's meeting of euro-zone finance
ministers. They may agree in principle on the aid package, but
they are likely to withhold final approval until it is clear
what proportion of Greece's private creditors will agree to take
losses.
The benchmark 10-year U.S. Treasury note was up
3/32 in price, with the yield at 1.9723 percent.
German Bund futures also erased losses and turned higher as
optimism with the Greek vote faded. March Bund futures
rose to 138.26 after falling as low as 137.64 earlier in the
day.
"It's fairly low-volume stuff and shows the market's
jittery. You could question why we sold off as much as we did
this morning because Greece can promise what they want, but it
doesn't mean they're going to deliver," said a trader in London.