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* World stocks rise on German-French debt crisis pledge
* Pledge boosts risk appetite, lifting euro, crude oil
* Dollar weakness buoys gold, helping commodity prices
By Herbert Lash
NEW YORK, Oct 10 (Reuters) - World stocks rallied for a fourth straight session on Monday and the euro jumped on a pledge by the German and French leaders to unveil new measures to resolve the European debt crisis by the end of the month.
Wall Street gained more than 2 percent and European markets rose almost as much after German Chancellor Angela Merkel and French President Nicolas Sarkozy said on Sunday their goal was to come up with a sustainable answer for Greece's debt woes.
Stocks rose across the board in Europe and the S&P 500's 50-day moving average signaled a bullish trend on Wall Street. But some investors were skeptical, given the lack of detail.
"It's a relief rally, not surprising given how bearish the last five or six weeks have been," said Michael McNaught-Davis, head of international equities at Scottish Widows, which has 145 billion pounds ($227 billion) under management.
Merkel and Sarkozy said they would agree on how to recapitalize European banks and present a plan for accelerating economic coordination in the euro zone by a G20 summit in Cannes, France on Nov. 3-4.
A spokesman for the German government emphasised that the confidential talks, aimed to help the euro zone regain the confidence of investors, are no 'miracle cure.'
Markets were also bolstered by news that Italian and French output were strong in August, while German exports were at a record high.
World stocks gained, rising 2.4 percent as measured by MSCI's all-country world index .
In Europe, the FTSEurofirst 300 index of top regional shares closed up a provisional 1.6 percent at 962.80 points.
The benchmark index of European shares has gained nearly 9 percent in the past week, while the S&P 500 is up more than 8 percent since briefly entering bear market territory -- a decline of 20 percent from its peak this year -- on Oct. 4.
On Wall Street, the Dow Jones industrial average was up 275.00 points, or 2.48 percent, at 11,378.12. The Standard & Poor's 500 Index was up 33.23 points, or 2.88 percent, at 1,188.69. The Nasdaq Composite Index was up 77.23 points, or 3.11 percent, at 2,556.58.
A move to nationalize Franco-Belgian bank Dexia also bolstered sentiment, as it was seen an indication that governments would step in and keep large lenders from going under.]
The Dexia rescue showed European governments "can act quickly and decisively," boosting hopes for real results on Merkel's and Sarkozy's promises, said Quincy Krosby, market strategist at Prudential Financial in Newark, New Jersey.
"The market gave Merkel and Sarkozy the benefit of the doubt. They know they have to come up with specifics," Krosby said.
The euro rose to its highest in more than a week versus the U.S. dollar, which slumped more than 2 percent against the Swiss franc, as the easing of risk aversion put the U.S. currency under broad selling pressure.
The euro, which was on track for its best daily rise since July 2010, climbed 2.1 percent to $1.3674.
"We're seeing risk coming back on and that's helping the euro," said Marc Chandler, global head of currency strategy at brown Brothers Harriman in New York.
Crude oil rose on improved optimism. November Brent crude futures were $2.97 firmer at $108.85, while U.S. November crude was up $2.69 at $85.67.
Spot gold prices rose $35.91 to $1,674.50 an ounce.
There was no U.S. Treasury bond trading due to a holiday.
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