* World stock markets rise on positive German, Chinese data
* Euro falls on reports of skepticism over growth rebound
* Oil rises on prospects of tighter supply
* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh
By April Joyner
NEW YORK, April 16 (Reuters) - Stocks around the globe rose on Tuesday to six-month highs as positive economic data in China and Germany boosted investor sentiment, though concerns about the impact of U.S. policy on the healthcare sector paused Wall Street's rally.
Wall Street's S&P 500 .SPX gave up nearly all of its earlier gains as healthcare shares fell after UnitedHealth Group Inc (NYSE:UNH) UNH.N discussed concerns about U.S. Senator Bernie Sanders' "Medicare for All" plan, as well as the White House's proposal to end discounts from drugmakers. healthcare, there is concern over various single-payer plans, which could damage the health insurance industry," said Tim Ghriskey, chief investment strategist at Inverness Counsel in New York. "That thesis slowly worked its way into the sector today, and aggressive selling begets more selling."
Even though Wall Street stocks treaded water, an advance in Chinese and European shares helped push the MSCI world equity index .MIWD00000PUS to a six-month high. Positive data, including a quicker pace of growth in Chinese home prices and improving sentiment among German investors, bolstered global equities.
The latest leg higher in this year's global rally comes as a degree of calm has descended across financial markets. European stock volatility .V2TX reached its lowest level since January 2018, while on Wall Street, the CBOE Volatility Index .VIX hit its lowest level in more than six months.
The U.S.-China trade dispute, signs of slowing global corporate earnings and fears about an economic downturn have weighed on riskier assets in the past year. But investors have been quick to seize on positive news to keep the bull market running.
Among the information investors are anticipating is Chinese quarterly economic growth data, due on Wednesday. After a worrying start to the year, Chinese numbers have been more positive as authorities ramped up stimulus measures, soothing investor fears about a slowdown in the world's second-biggest economy.
"The improvement in China data has been something of a lifeline," said Kristina Hooper, chief global market strategist at Invesco in New York. "When the Chinese economy moves in one direction, usually the European economy follows with a lag."
The Dow Jones Industrial Average .DJI rose 67.89 points, or 0.26%, to 26,452.66, the S&P 500 .SPX gained 1.48 points, or 0.05%, to 2,907.06 and the Nasdaq Composite .IXIC added 24.21 points, or 0.3%, to 8,000.23.
MSCI's gauge of stocks across the globe .MIWD00000PUS gained 0.16%. The pan-European STOXX 600 index .STOXX ended 0.3% higher.
As stocks advanced, U.S. Treasury yields rose to four-week highs. Benchmark 10-year notes US10YT=RR last fell 11/32 in price to yield 2.5904%, from 2.553% late on Monday. during this year's rally in stocks, "the flight-to-quality bid in Treasuries had not subsided," said Michael O'Rourke, chief market strategist at JonesTrading in Greenwich, Connecticut. "Now we're starting to see the beginning of that, and that's pushing yields higher."
Spot gold prices XAU= dropped to their lowest level this year and were last down 0.9% as risk appetite dented demand for the precious metal's safe-haven credentials. currency markets, the euro EUR= dipped after Reuters reported that some European Central Bank policymakers doubt whether growth will rebound in the euro zone as projected. The currency was last down 0.2% at $1.1282.
Sterling slipped 0.4% to $1.3049 after the Guardian newspaper reported that talks between Prime Minister Theresa May and the opposition Labor Party regarding Britain's exit from the European Union had stalled. The Labor Party denied the report. dollar index .DXY ticked up 0.1%.
Oil rose as fighting in Libya and declining Venezuelan and Iranian exports raised expectations of tightening global supply. crude LCOc1 futures rose 54 cents, or 0.76 percent, to settle at $71.72 a barrel. U.S. West Texas Intermediate crude CLc1 futures gained 65 cents, or 1%, to settle at $64.05 a barrel.