GLOBAL MARKETS-Stabilising oil lifts shares and bond yields

(Updates to New York open, updates prices, changes headline,
adds details, changes byline, dateline, previous LONDON)
By David Gaffen
NEW YORK, Dec 29 (Reuters) - Stocks rose around the world
and bond yields edged up on Tuesday as oil rebounded from
11-year lows on prospects for lower temperatures on both sides
of the Atlantic.
The fall in oil prices has been a major driver of financial
markets this year, hammering energy companies, lowering
inflation expectations and reinforcing bets on loose monetary
policy in Europe and a slow tightening in the United States.
U.S. West Texas Intermediate (WTI) futures CLc1 were up 94
cents to $37.75 per barrel, rebounding from a more than 3
percent fall on Monday. Brent, the international benchmark
LCOc1 , was at $37.66 per barrel, up $1.02 but only a bit less
than two dollars away from an 11-year low hit earlier in
December.
This lifted shares on Wall Street and in Europe. The S&P 500
Index gained 0.88 percent to 2074.33, led by a bounce in energy
names, while the pan-European FTSEurofirst 300 index .FTEU3
rose 1.2 percent and the euro zone's blue-chip Euro STOXX 50
index .STOXX50E advanced 1.4 percent. .EU
"Brent crude is slightly higher, and if it can drag itself
across the $37 per barrel mark it is struggling with, then
European stock markets may be able to hold on to some gains,"
said Spreadex analyst Connor Campbell.
Britain's blue-chip FTSE 100 index .FTSE , opening for the
first time since the Christmas break, rose 0.6 percent.
The U.S. 10-year Treasury yield US10YT=RR rose 4.5 basis
points to 2.27 percent, while German 10-year Bund yields
DE10YT=TWEB , the benchmark for euro zone borrowing costs, rose
2 basis points to 0.58 percent.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS was up 0.2 percent. But it remained on track to
mark a loss of around 12 percent for 2015, a year that saw it
log a more than seven-year high in April.
China's blue-chip CSI300 index .CSI300 added 0.9 percent,
while the Shanghai Composite Index .SSEC closed up by a
similar amount, as the central bank vowed to maintain reasonable
credit growth and keep the yuan stable.
China's yuan fell to 6.5805 against the dollar in offshore
trading CNH=D3 , its weakest since a hefty devaluation in
August, mirroring a fall in onshore rates, with traders citing
strong year-end dollar demand. It later firmed a bit to 6.5750.
The euro dipped 0.5 percent to $1.0906 EUR= .