* Brent hits $65 a barrel
* World shares flat after 3 days of gains
* Dollar gains as Fed expected to raise rates (Updates to U.S. trading open; changes byline, dateline, previously LONDON)
By Stephanie Kelly
NEW YORK, Dec 12 (Reuters) - Major U.S. and European stock indexes advanced on Tuesday, ahead of a meeting of U.S. Federal Reserve policymakers, while oil prices reached $65 per barrel earlier in the day for the first time since mid-2015. earlier jump in oil prices boosted energy-heavy European stock indexes, with the pan-European STOXX .STOXX rising 0.53 percent.
The Fed, whose two-day policy meeting ends Wednesday, is widely expected to raise benchmark interest rates.
"Investors are presented with an interesting (U.S.) economic outlook. They are looking at a positive set of economic data in an improving economy, with some hesitation with regards to Federal Reserve, given the change in leadership," said Andre Bakhos, managing director at Janlyn Capital in Bernardsville, New Jersey.
The Dow opened higher, boosted by Boeing .BA shares that touched a record peak after the company said it would raise its quarterly dividend and replace its existing share buyback program. Dow Jones Industrial Average .DJI rose 103.23 points, or 0.42 percent, to 24,489.26, the S&P 500 .SPX gained 4.88 points, or 0.18 percent, to 2,664.87 and the Nasdaq Composite .IXIC added 1.87 points, or 0.03 percent, to 6,876.95.
The MSCI index of world equities .MIWD00000PUS , which tracks stocks across 47 countries, slipped after three days of gains. MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS fell 0.40 percent.
OIL
Brent LCOcv1 was last at $64.70, up 0.02 percent on the day after Britain's Forties pipeline was shut due to cracks as a cold snap swept the country. U.S. crude CLcv1 was down 0.28 percent at $57.83 per barrel.
The Forties pipeline is important for the global oil market because the crude it carries normally sets the price of dated Brent, a benchmark used to price physical crude around the world and which underpins Brent futures.
The shutdown comes as oil supply cuts by the Organization of the Petroleum Exporting Countries (OPEC) have helped chip away an excess of inventories built up following a global supply glut which began to emerge in late 2014.
Investors will keep focus on policy decisions worldwide, with a slate of central banks, including the Fed, the European Central Bank and the Bank of England, set to meet during the week.
The U.S. dollar rose to its highest since Nov. 14 against a basket of currencies as the Fed begins its two-day meeting on Tuesday. will be watching for any signals that Fed officials are more optimistic on the prospect of faster growth as lawmakers appear close to passing a large overhaul of the tax code.
"People are looking for a little more confidence on the fact that tax legislation is set to pass," Sireen Harajli, a foreign exchange strategist at Mizuho in New York. "The general theme is that the dollar will continue to find support as we approach the end of the year."
The dollar index .DXY rose 0.32 percent, with the euro EUR= down 0.33 percent to $1.1729.
The Japanese yen weakened 0.13 percent versus the greenback at 113.73 per dollar, while Sterling GBP= was last trading at $1.332, down 0.13 percent on the day.
The New Zealand dollar NZD= set a one-month high as investors welcomed the appointment of national pension fund chief Adrian Orr to head the Reserve Bank from March. Treasury yields rose on Tuesday as investors reduced their debt holdings in advance of a $12 billion auction of 30-year government bonds and after stronger-than-forecast data on producer prices in November. 10-year notes US10YT=RR last fell 7/32 in price to yield 2.4101 percent, from 2.385 percent late on Monday.
The 30-year bond US30YT=RR last fell 15/32 in price to yield 2.7948 percent, from 2.772 percent late on Monday.
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http://reut.rs/1WAiOSC Global currencies vs. dollar
http://tmsnrt.rs/2egbfVh Global bonds dashboard
http://tmsnrt.rs/2fPTds0 Emerging markets in 2017
http://tmsnrt.rs/2ihRugV
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