* U.S. stocks trade higher with energy shares
* Oil prices jump
* Low-risk bond yields fall after Turkey downs Russian jet
(Updates with oil closing prices)
By Caroline Valetkevitch
NEW YORK, Nov 24 (Reuters) - Oil prices jumped and
government debt prices edged up on Tuesday after Turkish jets
shot down a Russian warplane near the Syrian border, adding to
worries about tensions in the Middle East.
U.S. stocks and a world stock index erased early losses to
trade slightly higher by late afternoon as energy shares
rallied, while the dollar fell against the traditionally
safe-haven Japanese yen, helping to push gold higher.
Investors have been on edge about chance of more terror
incidents following the Nov. 13 attacks in Paris.
Travel and leisure stocks fell after the U.S. State
Department late on Monday warned U.S. citizens of the risk to
worldwide travel posed by what it called increased terrorist
threats. ID:nL1N13I2IM
Shares of United Continental UAL.N , American Airlines
AAL.O and Delta Air Lines (N:DAL) DAL.N all were lower.
The warplane incident was the first time a NATO member's
armed forces had shot down a Russian or Soviet military aircraft
since the 1950s. Russia said its plane had been downed over
Syria.
"This has really gotten investors' attention," said Jack
Ablin, chief investment officer at BMO Private Bank in Chicago.
"Investors are worried that tensions could escalate."
Oil prices hit two-week highs, with Brent futures LCOc1
rising 2.9 percent to settle at $46.12 a barrel and U.S. crude
CLc1 gaining 2.7 percent to settle at $42.87.
U.S. stocks edged up, led by gains in energy shares, which
jumped along with oil. The S&P energy index .SPNY was up 2.4
percent.
The Dow Jones industrial average .DJI rose 51.08 points,
or 0.29 percent, to 17,843.76, the S&P 500 .SPX gained 5.76
points, or 0.28 percent, to 2,092.35 and the Nasdaq Composite
.IXIC added 2.45 points, or 0.05 percent, to 5,104.93.
The MSCI index of global stock markets .MIWD00000PUS was
up 0.1 percent, reversing early losses, while a broad gauge of
European stocks .FTEU3 ended down 1.3 percent.
Turkish shares .XU100 dropped as well, while the prospect
of escalating tension between NATO and Russia gave an additional
push lower to German yields.
In U.S. Treasuries trading, the 30-year yield hovered near 3
percent, while benchmark 10-year Treasury notes US10YT=RR were
up 5/32 in price to yield 2.232 percent.
DOLLAR FALLS
The dollar index .DXY , which measures the dollar against
six major world currencies, fell 0.2 percent.
Against the Japanese yen JPY= , the currency fell to 122.48
yen, off 0.4 percent.
Gold rose, recovering from near six-year lows after news of
the plane's downing. Spot gold XAU= peaked at $1,080.51 and
was up 0.7 percent at $1,077.30 an ounce.