* Wall Street turns positive for year
* Britain's FTSE 100 retraces all its post-Brexit losses
* Oil jumps on U.S. drawdown, looming strike in Norway
* Bonds strong on talk of easier monetary policy
(Updates with U.S. afternoon trading)
By Hilary Russ and Saqib Iqbal Ahmed
NEW YORK, June 29 (Reuters) - Stock markets around the world
rebounded for the second day on Wednesday as fears about last
week's Brexit vote eased and investors wagered central banks
would ultimately ride to the rescue with more stimulus.
Fading concerns over Britain's vote to exit the European
Union bolstered oil prices and helped boost energy shares both
in Europe and in the United States.
Wall Street reclaimed some of the ground lost in the
aftermath of the Brexit vote and turned positive for the year.
"It's not the end of the world and it never was the end of
the world and to have these kinds of reactions was ridiculous,"
said Jeff Weniger, senior portfolio strategist at BMO Private
Bank in Chicago.
The Dow Jones industrial average .DJI rose 285.58 points,
or 1.64 percent, at 17,695.3, the S&P 500 .SPX gained 36.38
points, or 1.79 percent, at 2,072.47 and the Nasdaq Composite
.IXIC added 95.43 points, or 2.03 percent, at 4,787.30.
All 10 major S&P indexes were in the black, led by a 2.2
percent jump in the energy index .SPNY .
The chance of more monetary stimulus helped markets
worldwide.
Speaking on Tuesday, Governor Jerome Powell, the first
Federal Reserve policymaker to comment since the vote, said
Brexit had shifted global risks "to the downside," reinforcing
expectations the Fed will not hike U.S. rates this year and
could even cut.
"There are very reasonable expectations from central banks
globally, especially from the U.S. Federal Reserve, the ECB and
the BOE, to provide more liquidity, guidance and clarity to
support markets," said Stephen Wood, chief market strategist for
Russell Investments in New York.
The MSCI world equity index .MIWD00000PUS of shares in 45
nations, rose 2.13 percent. The index was on pace for its best
two-day rally in 10 months.
Europe's broad FTSEurofirst 300 index .FTEU3 rose 3
percent. Higher oil prices and the chance of more monetary
stimulus helped Britain's FTSE 100 .FTSE erase all its
post-Brexit losses.
UK and European banks, a focus of concern since Britain
shocked global markets by voting to leave the European Union,
extended a recovery from two days of trading that had knocked
almost 40 percent off shares in Barclays BARC.L and RBS
RBS.L .
Oil prices jumped more than 4 percent, with Brent crude
rising above the $50 a barrel mark, after a larger-than-expected
drawdown in U.S. crude inventories. The potential for an oil
workers' strike in Norway and a crisis in Venezuela's energy
sector added support to crude futures.
U.S. crude oil futures CLc1 settled up 4.24 percent, or
$2.03, higher at $49.88, while Brent crude LCOc1 rose 4.2
percent, or $2.03, at $50.61 per barrel.
Sterling, a big victim of the Brexit vote, was up 0.63
percent at $1.3418 against the dollar GBP=D4 after having hit
a 31-year low on Monday.
In the bond market, the U.S. 30-year Treasury yield
approached record lows on bets of more unconventional stimulus
measures from major central banks.
"It's a symptom of the flight to safety. People are also
forced to go out the curve to get yield," Thomas Roth, head of
U.S. Treasury trading at Mitsubishi UFJ Securities USA in New
York, said of the persistent bid for the long bond.
Spot gold was up 0.8 percent $1,322.62 an ounce.