GLOBAL MARKETS-Oil continues recovery, dollar slips in quiet trade

(Adds opening of U.S. markets, details, changes byline,
dateline, previous LONDON)
By David Gaffen
NEW YORK, Dec 24 (Reuters) - A fourth day of gains in oil
prices helped lift European shares on Thursday, while an almost
1 percent drop against the euro this week took the shine off a
strong 2015 for the dollar.
Markets were subdued, with a number of major bourses,
including those in Germany, Brazil, Norway closed entirely,
while several other markets were set to close early for the
Christmas holiday.
Wall Street dipped modestly in subdued trading on an
abbreviated day that was set to close at 1 p.m. (1800 GMT).
The Dow Jones industrial average .DJI fell 42.05 points,
or 0.24 percent, to 17,560.56, the S&P 500 .SPX lost 2.66
points, or 0.13 percent, to 2,061.63 and the Nasdaq Composite
.IXIC added 6.75 points, or 0.13 percent, to 5,052.68.
Falling supplies and the lifting of a 40-year old ban on
most U.S. crude exports pushed front-month West Texas
Intermediate (WTI) crude futures CLc1 49 cents, or 1.3
percent, higher to $38 a barrel. They were set for the biggest
weekly gain since early October. O/R
Internationally traded Brent futures LCOc1 rose 67 cents,
or 1.8 percent, to $38.02, having fallen about 35 percent this
year.
Tumbling oil prices have battered energy companies and
lowered inflation expectations, pushing down government
borrowing costs and reinvigorating bets on further European
Central Bank monetary policy easing.
Shares of British oil majors such as BP BP.L and Royal
Dutch Shell RDSa.L climbed around 1 percent, but in the United
States, Exxon Mobil (N:XOM) XOM.N and Chevron (N:CVX) CVX.N were lower, as
energy stocks pulled back from a few days of strength. The
sector has been the worst performer amongst the S&P industries
in 2015.
Britain's blue-chip FTSE 100 index .FTSE rose 0.2 percent,
while Spain's IBEX .IBEX advanced 0.4 percent and France's CAC
.FCHI edged down 0.2 percent.
"The London market is benefiting from the latest rebound in
crude oil prices," said Spreadex analyst Connor Campbell.
MSCI's all-country world stocks index .MIWD00000PUS added
0.2 percent.
The euro EUR= was up 0.4 percent at $1.0954, while the
dollar .DXY was down 0.4 percent against an index of rival
currencies, having risen almost 9 percent this year.
Against the euro, the dollar lost 0.8 percent this week,
having gained 11 percent since January in the run-up to the
first U.S. Federal Reserve interest rate hike since 2006.
"As we move closer towards 2016 there are few calls for the
dollar to repeat its 2015 strength, even despite the Fed now
finally having commenced its tightening cycle," said Simon
Smith, chief economist at FXPro.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS was up 0.6 percent, after U.S. stocks posted
their third straight session of gains.
China's blue-chip CSI300 index .CSI300 and the Shanghai
Composite Index .SSEC fell 1 percent and 0.6 percent,
respectively, after regulators tightened rules for insurers
investing in listed firms. Japan's Nikkei .N225 ended 0.5
percent lower after a stronger start.
Spot gold XAU= rose 0.3 percent to $1,073.60 an ounce.