(Recasts, updates prices)
* Oil prices drop, hover near 7-year lows
* Dollar rebounds ahead of Fed meeting
* Long-dated U.S. Treasury yields edge lower
By Sam Forgione
NEW YORK, Dec 10 (Reuters) - U.S. stocks climbed but other
major world equity markets were little changed on Thursday ahead
of a widely expected interest rate hike by the U.S. Federal
Reserve next week, while the dollar rebounded from the previous
day's losses.
Oil prices fell to near seven-year lows and overall markets
were more subdued as investors looked ahead to the Fed's Dec.
15-16 policy meeting.
European shares steadied after touching a two-month low,
with retailers and technology firms under pressure as commodity
shares stabilized.
U.S. crude fell as worries over a global glut persisted and
prices were seen as vulnerable to further weakness in the run up
to year-end.
Brent crude LCOc1 was last down 0.8 percent at $39.81 a
barrel. U.S. crude CLc1 was last down 0.8 percent at $36.85
per barrel.
"People are focused on two things right now: they're looking
at commodity prices, they're looking at interest rates, and
they're tying to figure out how that is going to impact growth
heading into next year," said Bryan Novak, portfolio manager at
Astor Investment Management in Chicago.
MSCI's all-country world equity index .MIWD00000PUS , which
tracks shares in 45 nations, was last up 0.06 percent.
The Dow Jones industrial average .DJI rose 127.18 points,
or 0.73 percent, to 17,619.48, the S&P 500 .SPX gained 11.78
points, or 0.58 percent, to 2,059.4 and the Nasdaq Composite
.IXIC added 32.53 points, or 0.65 percent, to 5,055.40.
Europe's broad FTSEurofirst 300 index .FTEU3 was last down
0.2 percent, at 1,428.08.
The dollar rose as markets refocused on the expected rate
increase from the Fed, moving up from one-month lows against the
euro and yen. The dollar index .DXY , which tracks the
greenback versus a basket of six currencies, was last up 0.56
percent, at 97.898.
"You are seeing people become more convinced that the Fed is
going to move on autopilot," said Karl Schamotta, director of FX
strategy and structured products at Cambridge Mercantile Group
in Toronto.
U.S. long-dated Treasury debt yields edged lower in thin
trading, weighed down by tumbling oil prices, which suggested
inflation would remain benign.
Benchmark 10-year Treasury notes US10YT=RR were last down
1/32 in price to yield 2.225 percent. U.S. 30-year yields
US30YT=RR were up 8/32 in price to yield 2.96 percent.
Spot gold prices XAU= fell slightly, dropping 55 cents to
$1,072.25 an ounce.
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Global assets in 2015 http://link.reuters.com/dub25t
Currencies vs dollar http://link.reuters.com/tak27s
Commodities performance http://link.reuters.com/rac73w
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