(Updates to New York open, updates prices, changes headline, adds details, changes byline, dateline, previous LONDON)
By David Gaffen
NEW YORK, Dec 29 (Reuters) - Stocks rose around the world and bond yields edged up on Tuesday as oil rebounded from 11-year lows on prospects for lower temperatures on both sides of the Atlantic.
The fall in oil prices has been a major driver of financial markets this year, hammering energy companies, lowering inflation expectations and reinforcing bets on loose monetary policy in Europe and a slow tightening in the United States.
U.S. West Texas Intermediate (WTI) futures CLc1 were up 94 cents to $37.75 per barrel, rebounding from a more than 3 percent fall on Monday. Brent, the international benchmark LCOc1 , was at $37.66 per barrel, up $1.02 but only a bit less than two dollars away from an 11-year low hit earlier in December.
This lifted shares on Wall Street and in Europe. The S&P 500 Index gained 0.88 percent to 2074.33, led by a bounce in energy names, while the pan-European FTSEurofirst 300 index .FTEU3 rose 1.2 percent and the euro zone's blue-chip Euro STOXX 50 index .STOXX50E advanced 1.4 percent. .EU
"Brent crude is slightly higher, and if it can drag itself across the $37 per barrel mark it is struggling with, then European stock markets may be able to hold on to some gains," said Spreadex analyst Connor Campbell.
Britain's blue-chip FTSE 100 index .FTSE , opening for the first time since the Christmas break, rose 0.6 percent.
The U.S. 10-year Treasury yield US10YT=RR rose 4.5 basis points to 2.27 percent, while German 10-year Bund yields DE10YT=TWEB , the benchmark for euro zone borrowing costs, rose 2 basis points to 0.58 percent.
MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS was up 0.2 percent. But it remained on track to mark a loss of around 12 percent for 2015, a year that saw it log a more than seven-year high in April.
China's blue-chip CSI300 index .CSI300 added 0.9 percent, while the Shanghai Composite Index .SSEC closed up by a similar amount, as the central bank vowed to maintain reasonable credit growth and keep the yuan stable. urn:newsml:reuters.com:*:nL3N14H2AL
China's yuan fell to 6.5805 against the dollar in offshore trading CNH=D3 , its weakest since a hefty devaluation in August, mirroring a fall in onshore rates, with traders citing strong year-end dollar demand. It later firmed a bit to 6.5750.
The euro dipped 0.5 percent to $1.0906 EUR= .