(Reuters) - Global equity markets rose and the euro strengthened against the U.S. dollar on Friday after Italy's Senate approved economic reforms aimed at restoring investor confidence and clearing the way for a new government. The package of austerity measures that were demanded by the European Union will now go to the Italian lower house, which is expected to approve it on Saturday. That vote will trigger the resignation of Prime Minister Silvio Berlusconi. European shares edged higher on hopes Italy is making political progress that would allow it to quickly cut its debt and ease investors' fears about the future of the euro zone. Former European Commissioner Mario Monti is widely expected to take over as head of a broad-based national unity government in Italy, a move many investors would welcome. "If Monti comes in, that's what the market wants, just as the ex-vice chair of the ECB is what the market wanted for Greece," said Paul Mendelsohn, chief investment strategist at Windham Financial Services in Charlotte, Vermont. The euro was up 0.7 percent at $1.3687. The FTSEurofirst 300 .FTEU3 index of top European shares was up 1.6 percent at 978.86. Stocks on Wall Street opened 1 percent higher. The Dow Jones industrial average .DJI was up 125.74 points, or 1.06 percent, at 12,019.53. The Standard & Poor's 500 Index .SPX was up 13.83 points, or 1.12 percent, at 1,253.52. The Nasdaq Composite Index .IXIC was up 28.73 points, or 1.09 percent, at 2,653.88. Brent crude oil also rose. Brent crude futures were 39 cents up at $114.10 a barrel. U.S. light crude futures traded 54 cents higher at $98.32 a barrel. (Reporting by Charles Mikolajczak in New York and Brian Gorman, Zaida Espana in London; Writing by Herbert Lash; Editing by James Dalgleish)

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