* 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. urn:newsml:reuters.com:*:nL8N13J14S
"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. urn:newsml:reuters.com:*:nL3N13J0V1
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. urn:newsml:reuters.com:*:nL8N13J4JU
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. urn:newsml:reuters.com:*:nL1N13J18H
DOLLAR FALLS
The dollar index .DXY , which measures the dollar against six major world currencies, fell 0.2 percent. urn:newsml:reuters.com:*:nL1N13J1BK 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. urn:newsml:reuters.com:*:nL3N13J2NO