GLOBAL MARKETS-Stocks edge higher, impact from Paris attacks seen limited

* European shares reverse initial losses to gain slightly
* Dollar firms vs yen, euro

(Adds open of U.S. markets, byline, dateline; previous LONDON)
By Herbert Lash
NEW YORK, Nov 16 (Reuters) - The dollar rose and U.S. and
European equity markets gained modestly on Monday as analysts
saw limited economic impact worldwide by the attacks in Paris on
Friday, though the sale of luxury goods and tourism in the
French capital may suffer.
Asian shares hit six-week lows overnight as investors bought
assets traditionally considered safe havens, including gold,
the yen and low-risk government debt. But European shares
reversed early losses and the yen later fell as stocks on Wall
Street opened higher.
Gold rose from last week's six-year low as the attacks in
Paris, in which 129 people were killed and hundreds wounded,
prompted an initial bout of global risk aversion, though
investor worries later faded.
Police raided the homes of suspected Islamist militants
across France overnight, arresting 23 people, and investigators
identified a Belgian national living in Syria as the possible
mastermind behind the Paris attacks. urn:newsml:reuters.com:*:nL8N13B1NP
The euro EUR= euro was off 0.58 percent versus the
greenback at $1.0715, having pared losses from a near
6-1/2-month low overnight.
"I'd say the market's taking relatively in stride what
happened in Paris. The euro has been hit for sure, but it's well
off the lows," said Marc Chandler, global head of currency
strategy at Brown Brothers Harriman & Co. in New York.
French shares slightly underperformed - France's CAC .FCHI
index was down 0.07 percent - weighed by declines in
tourism-related stocks. French hotel group Accor ACCP.PA
dropped 4.7 percent and Air France AIRF.PA shed 5.7 percent.

Luxury stocks also slid, though less so. Hermes HRMS.PA
fell 1.4 percent, LVMH LVMH.PA fell 1.6 percent and Kering
PRTP.PA slid 0.8 percent. Spending by foreign tourists in
Paris makes up a large chunk of these companies' sales.
The STOXX 60 Travel & Leisure index .SXTP of mostly
London-listed shares fell 1.4 percent amid fears the sector
could be impacted by loss of consumer confidence.
"Paris is one of the most important cities worldwide in
terms of luxury spending and the timing is not good too - a few
weeks before Christmas, the most important period for
retailers," said Gregoire Laverne, fund manager at Roche Brune
Asset Management.
MSCI's all-country world index .MIWD00000PUS fell 0.1
percent, while the pan-European FTSEurofirst 300 .FTEU3 index
edged up 0.09 percent.
The Dow Jones industrial average .DJI rose 36.34 points,
or 0.21 percent, to 17,281.58. The S&P 500 .SPX gained 3.72
points, or 0.18 percent, to 2,026.76 but the Nasdaq Composite
.IXIC lost 10.94 points, or 0.22 percent, to 4,916.95.
"It looks like there's not going to be a whole lot of change
in terms of policy by either the French or the rest of the
world," said Jeffrey Saut, chief investment strategist at
Raymond James Financial in St. Petersburg, Florida.
The market was oversold after the benchmark S&P 500 had
declined over the past six of eight sessions, Saut said.
U.S. Treasuries prices rose slightly on concerns over
Friday's attacks in Paris, though the gains were pared as
investors still expect the U.S. Federal Reserve to raise
interest rates in December.
The yield on the benchmark 10-year Treasury notes
US10YT=RR rose 8/32 in price to yield 2.2517 percent.
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The dollar index .DXY , which measures the greenback
against a basket of major currencies, was up slightly at 99.179.
The dollar rose against the Japanese yen JPY= , adding 0.33
percent to 123.03 yen per dollar, amid expectations an interest
rate hike is likely in the United States in December.
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Front-month Brent crude prices were down $1.20 at $43.27 a
barrel. U.S. futures fell 58 cents to $40.16 a barrel.
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