* Wall Street turns positive for year
* Britain's FTSE 100 retraces all its post-Brexit losses
* Oil jumps on U.S. drawdown, looming strike in Norway
* Bonds strong on talk of easier monetary policy (Updates with U.S. afternoon trading)
By Hilary Russ and Saqib Iqbal Ahmed
NEW YORK, June 29 (Reuters) - Stock markets around the world rebounded for the second day on Wednesday as fears about last week's Brexit vote eased and investors wagered central banks would ultimately ride to the rescue with more stimulus.
Fading concerns over Britain's vote to exit the European Union bolstered oil prices and helped boost energy shares both in Europe and in the United States.
Wall Street reclaimed some of the ground lost in the aftermath of the Brexit vote and turned positive for the year.
"It's not the end of the world and it never was the end of the world and to have these kinds of reactions was ridiculous," said Jeff Weniger, senior portfolio strategist at BMO Private Bank in Chicago.
The Dow Jones industrial average .DJI rose 285.58 points, or 1.64 percent, at 17,695.3, the S&P 500 .SPX gained 36.38 points, or 1.79 percent, at 2,072.47 and the Nasdaq Composite .IXIC added 95.43 points, or 2.03 percent, at 4,787.30.
All 10 major S&P indexes were in the black, led by a 2.2 percent jump in the energy index .SPNY . chance of more monetary stimulus helped markets worldwide.
Speaking on Tuesday, Governor Jerome Powell, the first Federal Reserve policymaker to comment since the vote, said Brexit had shifted global risks "to the downside," reinforcing expectations the Fed will not hike U.S. rates this year and could even cut. are very reasonable expectations from central banks globally, especially from the U.S. Federal Reserve, the ECB and the BOE, to provide more liquidity, guidance and clarity to support markets," said Stephen Wood, chief market strategist for Russell Investments in New York.
The MSCI world equity index .MIWD00000PUS of shares in 45 nations, rose 2.13 percent. The index was on pace for its best two-day rally in 10 months.
Europe's broad FTSEurofirst 300 index .FTEU3 rose 3 percent. Higher oil prices and the chance of more monetary stimulus helped Britain's FTSE 100 .FTSE erase all its post-Brexit losses.
UK and European banks, a focus of concern since Britain shocked global markets by voting to leave the European Union, extended a recovery from two days of trading that had knocked almost 40 percent off shares in Barclays BARC.L and RBS RBS.L .
Oil prices jumped more than 4 percent, with Brent crude rising above the $50 a barrel mark, after a larger-than-expected drawdown in U.S. crude inventories. The potential for an oil workers' strike in Norway and a crisis in Venezuela's energy sector added support to crude futures. crude oil futures CLc1 settled up 4.24 percent, or $2.03, higher at $49.88, while Brent crude LCOc1 rose 4.2 percent, or $2.03, at $50.61 per barrel.
Sterling, a big victim of the Brexit vote, was up 0.63 percent at $1.3418 against the dollar GBP=D4 after having hit a 31-year low on Monday. the bond market, the U.S. 30-year Treasury yield approached record lows on bets of more unconventional stimulus measures from major central banks. a symptom of the flight to safety. People are also forced to go out the curve to get yield," Thomas Roth, head of U.S. Treasury trading at Mitsubishi UFJ Securities USA in New York, said of the persistent bid for the long bond.
Spot gold was up 0.8 percent $1,322.62 an ounce.