* U.S. stocks end higher with energy shares
* Oil prices jump
* Low-risk bond yields fall after Turkey downs Russian jet
(Updates with U.S. markets' closing levels)
By Caroline Valetkevitch
NEW YORK, Nov 24 (Reuters) - Oil prices jumped and
government debt prices edged up on Tuesday as concern about
global tensions rose after Turkey shot down a Russian warplane
near the Syrian border.
U.S. stocks erased early declines, ending slightly higher as
energy shares rose with oil prices.
The dollar fell against the traditionally safe-haven
Japanese yen, helping to push gold up.
Travel 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 United Continental UAL.N , American Airlines
AAL.O and Delta Air Lines (N:DAL) DAL.N each fell at least 2
percent.
Investors have been on edge about the risk of more terror
incidents following the Nov. 13 attacks in Paris that left at
least 130 dead.
The warplane incident was the first time a NATO member's
armed forces shot down a Russian or Soviet military aircraft
since the 1950s. Russia said its plane was downed over
Syria.
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.
Energy shares contributed the biggest lift to U.S. stocks.
The S&P energy index .SPNY ended up 2.2 percent.
"You came in this morning and everybody was talking about
this potential escalation of violence between Turkey and
Russia," said Andrew Frankel, co-president of Stuart Frankel &
Co in New York. But, "Russia's response could have been a lot
more confrontational."
The Dow Jones industrial average .DJI rose 19.51 points,
or 0.11 percent, to 17,812.19, the S&P 500 .SPX gained 2.55
points, or 0.12 percent, to 2,089.14 and the Nasdaq Composite
.IXIC added 0.33 points, or 0.01 percent, to 5,102.81.
The MSCI index of global stock markets .MIWD00000PUS was
down 0.1 percent, well off the day's lows, while a broad gauge
of European stocks .FTEU3 dropped 1.3 percent.
Turkish shares .XU100 fell 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, benchmark 10-year Treasuries
notes US10YT=RR were up 3/32 in price to yield 2.239 percent,
down 1 basis point from late on Monday.
Upbeat U.S. gross domestic product numbers, which supported
the view the U.S. Federal Reserve could raise interest rates
next month, limited the bond market's gains.
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 122.56
yen, off 0.2 percent.
Scott Smith, senior market analyst at Cambridge Global
Payments in Toronto, said he expects heightened volatility and
choppy trading this week, which will be shortened by the U.S.
Thanksgiving holiday on Thursday.
Gold rose, recovering from near six-year lows after news of
the plane's downing. Spot gold XAU= rose as much as 1.1
percent to $1,080.51 and was last up 0.5 percent at $1,074.61 an
ounce.