CORRECTED - GLOBAL MARKETS-U.S. data, German vote lift equities, euro

* U.S. data bolsters equities, crude oil

* Bill to beef up euro rescue fund passes in Germany (Refiles to correct headline) (Updates prices, adds U.S. market open; changes dateline, previous LONDON and byline)

By Rodrigo Campos

NEW YORK, Sept 29 (Reuters) - Stocks and the euro rose on Thursday as German lawmakers approved new powers for the euro zone rescue fund, while a pause in the stream of bad economic news in the United States further lifted investor sentiment.

Investors were encouraged as the number of new U.S. applications for unemployment insurance fell to a five-month low last week and the economy grew slightly more than previously reported in the second quarter, suggesting the world's largest economy can avoid a recession. For details see [ID:nS1E78S0BT].

The approval of a beefed-up bailout fund in Germany appeased markets that have been increasingly worried about Berlin's commitment to resolving the debt crisis. [ID:nL5E7KT2K6].

"The news out of Germany helped -- that gave (the market) a lift to start and obviously getting good news on the U.S. front magnifies that," said Peter Jankovskis, co-chief investment officer at OakBrook Investments LLC in Lisle, Illinois.

Volatility is likely to remain high as markets react to European headlines and try to gauge the commitment of governments and institutions as they work to prevent a Greek default.

A rebalancing of holdings as the third quarter draws to a close also could keep markets volatile.

Shortly after the opening bell, the Dow Jones industrial average <.DJI> was up 213.43 points, or 1.94 percent, at 11,224.33. The S&P 500 <.SPX> was up 17.07 points, or 1.48 percent, at 1,168.13. The Nasdaq Composite <.IXIC> was up 25.40 points, or 1.02 percent, at 2,516.98.

U.S. crude futures CLc1 gained 2.7 percent, boosted by the upbeat U.S. data.

A gauge of top European shares .FTEU3 and an index of global equities <.MIWD00000PUS> both rose more than 1 percent.

From relief after the lawmakers' vote in Berlin, the market's focus will next shift to Thursday talks between the European Union, IMF and Athens. Auditors will see if Greece has done enough to receive the next tranche of aid.

The failure to find a definitive solution to the crisis has led to worries about contagion engulfing bigger euro zone economies like Italy and Spain and triggered concerns about the health of the European banking system.

The euro rose 0.9 percent to around $1.3649, but it is still seen as vulnerable to selling pressures as investors cash in the gains.

"There's been a little bit of a relief rally given that there was such strong support for the measure in Germany," said Joe Manimbo, senior market analyst at Travelex Global Payments in Washington. "But being month end, the euro might be a sell up here at these higher levels."

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Despite the latest bounce, the euro has lost nearly 5 percent against the dollar this month, hammered by mounting worries over the prospect of a Greek default and bickering among policymakers. (Additional reporting by Chuck Mikolajczak and Wanfeng Zhou; Editing by Theodore d'Afflisio)