GLOBAL MARKETS-Global stocks rise on stimulus plans, oil falls

* U.S., European shares rise as government bonds fall

* Oil settles lower after rising above $50 a barrel

* Dollar climbs for third day versus major currencies

By Vivianne Rodrigues

NEW YORK, Jan 6 (Reuters) - Stocks climbed across the globe on Tuesday, extending last week's advance, as investors bet economic stimulus packages would spur economic recovery, while demand concerns pulled oil off of levels above $50 a barrel.

Technology shares led gainers on Wall Street, with the S&P Information Technology index , rising about 3 percent, and the U.S. dollar extended a three-day rally against most major currencies, particularly the euro.

U.S. Treasuries erased losses to trade little changed after stocks came off session highs, and New York crude futures settled lower as demand concerns and profit-taking halted a rally.

Investors looked past weak U.S. economic data and focused on President-elect Barack Obama's stimulus plan, which has helped fuel a tentative recovery in world equity markets.

"Bad news has already been priced in by the market, while good news hasn't. All the stimulus plans and aggressive interest rate cuts are just starting to have an impact on equities," said Marc Touati, chief economist at Global Equities in Paris.