* Major U.S. stock indexes higher for third day
* Pan-European index up over 2 pct
* Brent, U.S. crude strong
* Dollar edges higher against other major currencies
(Updates with U.S. markets opening; changes dateline from
LONDON)
By Lewis Krauskopf
NEW YORK, Dec 23 (Reuters) - U.S. and European stocks posted
strong gains on Wednesday, helped by energy shares as a drop in
crude inventories lifted beaten-down oil prices, while the
dollar was poised to snap a three-day losing streak.
With oil's 1-1/2-year slide worsening this month, Wall
Street's performance has been closely tied to the price of
crude, raising some concerns that weakness in the commodity
would derail typical year-end strength in stocks.
Benchmark Brent crude LCOc1 rose 3.1 percent to $37.23 a
barrel, while U.S. crude CLc1 prices jumped 4.2 percent to
$37.65 a barrel.
U.S. crude inventories fell 5.88 million barrels to 484.78
million barrels last week, the Energy Information Administration
said, compared with a forecast rise of 1.4 million barrels.
Oil stocks gained, with Chevron (N:CVX) CVX.N up 2.7 percent and
Royal Dutch Shell RDSa.L jumping 4.6 percent.
"There's a pretty strong bounce in the price of oil and, as
we've seen in the past several days, the market seems to be
following that pretty closely," said Jeff Clark, trading analyst
at Stansberry Research.
The Dow Jones industrial average .DJI gained 132.69
points, or 0.76 percent, at 17,549.96, the S&P 500 .SPX rose
17.68 points, or 0.87 percent, at 2,056.65 and the Nasdaq
Composite .IXIC added 33.60 points, or 0.67 percent, at
5,034.71.
The pan-European FTSEurofirst 300 index .FTEU3 rose 2.8
percent. Mining stocks rallied, with Anglo American AAL.L and
Glencore GLEN.L each up more than 8 percent, helped by an 0.8
percent rise in copper prices CMCU3 .
"Resource shares continue to lead the bounce back ... Brent
crude above $35 per barrel and copper above $2 per lb should be
enough to fend off commodity sector bears into the year end,"
said Jasper Lawler, analyst at CMC Markets.
MSCI's all-country world stocks index .MIWD00000PUS rose
1.1 percent, and was on track to gain for a third consecutive
session.
A gauge of U.S. business investment plans fell in November
and the prior month's increase was revised sharply lower. But
other U.S. data showed personal income increased for an eighth
straight month in November, in a potential boost to consumer
spending next year.
U.S. Treasury yields rose, with the economic data supporting
a swift pace of Federal Reserve rate increases next year and
gains in oil prices suggesting higher inflation.
U.S. 30-year yields US30YT=GBAN reached a one-week high of
3.009 percent, while yields on Treasuries maturing between 5-10
years hit nearly one-week highs. Benchmark 10-year U.S. Treasury
notes US10YT=RR were down 7/32 in price to yield 2.266
percent.
"We've been in somewhat of a down cycle in economic numbers,
and they are starting to gather a little bit of steam," said
Ellis Phifer, market strategist at Raymond James in Memphis,
Tennessee.
The dollar index .DXY , which measures the greenback versus
a group of six currencies, was up 0.2 percent.
Spot gold XAU= edged down 0.08 percent in thin pre-holiday
trade.