* European shares reverse initial losses to gain slightly
* Brent crude pares losses as economic growth fears fade (Updates with oil settlement prices)
By Herbert Lash
NEW YORK, Nov 16 (Reuters) - The dollar rose and global equity markets gained on Monday as analysts saw limited economic impact worldwide from Friday's attacks in Paris, although the sale of luxury goods and stocks geared to tourism in the French capital may suffer.
Asian shares hit six-week lows overnight as investors bought safe-haven assets, including gold, the yen and low-risk government debt. But stocks on Wall Street climbed about 1 percent and European shares reversed early losses.
Gold rose from last week's six-year low as the attacks in Paris, in which 129 people were killed and hundreds wounded, prompted an initial bout of global risk aversion.
However, investor worries proved short-lived and gold pared gains as investors renewed their focus on expectations the Federal Reserve will raise interest rates in December.
"Expectations are that (the attacks) will have a modest potential economic impact," said Eric Wiegand, senior portfolio manager at the Private Client Reserve at U.S. Bank in New York.
Police raided the homes of suspected Islamist militants across France overnight, arresting 23 people, and investigators identified a Belgian national living in Syria as the possible mastermind behind the Paris attacks. urn:newsml:reuters.com:*:nL8N13B1NP
The euro EUR= was off 0.94 percent versus the greenback at $1.0676.
French shares slightly underperformed - France's CAC .FCHI index closed down 0.08 percent - weighed by declines in tourism-related stocks. French hotel group Accor ACCP.PA dropped 4.7 percent and Air France AIRF.PA shed 5.7 percent. urn:newsml:reuters.com:*:nL8N13B4I3
Luxury stocks also slid, though less so. Hermes HRMS.PA and LVMH LVMH.PA both fell 1.4 percent, while Kering PRTP.PA slipped 0.7 percent. Spending by foreign tourists in Paris makes up a large chunk of these companies' sales.
The STOXX 60 Travel & Leisure index .SXTP of mostly London-listed shares fell 1.3 percent amid fears the sector could be hit by a loss of consumer confidence.
"Paris is one of the most important cities worldwide in terms of luxury spending and the timing is not good too - a few weeks before Christmas, the most important period for retailers," said Gregoire Laverne, fund manager at Roche Brune Asset Management.
MSCI's all-country world index .MIWD00000PUS rebounded, gaining 0.32 percent, while the pan-European FTSEurofirst 300 .FTEU3 index closed up 0.2 percent at 1,460.75.
Steven Einhorn, vice chairman of hedge fund Omega Advisors, said he expects U.S. stocks easily to outperform bonds in 2016, with a total return of 6 percent to 8 percent.
Investors will come to accept a long-lasting U.S. economic expansion with a friendly Federal Reserve, Einhorn told the Reuters Global Investment Outlook Summit in New York.
The Dow Jones industrial average .DJI rose 169.56 points, or 0.98 percent, to 17,414.8. The S&P 500 .SPX gained 20.87 points, or 1.03 percent, to 2,043.91 and the Nasdaq Composite .IXIC added 38.73 points, or 0.79 percent, to 4,966.62. urn:newsml:reuters.com:*:nL1N1382PB
U.S. Treasuries prices rose slightly on concerns over Friday's attacks in Paris, though the gains were pared as investors still expect the U.S. Federal Reserve to raise interest rates in December.
Benchmark 10-year Treasury notes US10YT=RR rose 2/32 in price to yield 2.2711 percent. urn:newsml:reuters.com:*:nL1N13B1DV
The dollar index .DXY , which measures the greenback against a basket of major currencies, was up 0.45 percent at 99.445.
The dollar rose against the Japanese yen JPY= , adding 0.51 percent to 123.24 yen per dollar, amid expectations the Fed will hike interest rates in December. urn:newsml:reuters.com:*:nL1N13B16J
Brent crude oil prices pared losses to rise as worries about the economic impact of Friday's attacks ebbed, while U.S. crude rose with gains in the stock market.
Front-month Brent crude prices settled 9 cents higher at $44.56 a barrel. U.S. futures rose $1.00 to settle at $41.74 a barrel. urn:newsml:reuters.com:*:nL8N13B2G6