By Herbert Lash
NEW YORK (Reuters) - Global equity markets rose and gold prices eased on Wednesday as investors took in stride a potential limited American military strike against Syria and data from around the globe suggested a growing world economy.
The dollar hovered near a six-week peak against a basket of currencies as encouraging U.S. manufacturing data on Tuesday reinforced expectations that the Federal Reserve would cut back its economic stimulus later this month.
Brent crude drifted below $115 a barrel and gold prices fell below $1,400 an ounce.
Rising stocks on Wall Street led share prices in Europe to rebound. MSCI's measure of global equity markets rose 0.5 percent and the pan-European Eurofirst 300 index of leading shares in Europe was slightly above break-even.
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"People hope there will just be a tactical strike and that's it," said Mark Grant, managing director at Southwest Securities in Fort Lauderdale, Florida. "But there are worries about retaliation and a wider conflict isn't priced into the market."
The Dow Jones industrial average was up 84.74 points, or 0.57 percent, at 14,918.70. The Standard & Poor's 500 Index was up 10.45 points, or 0.64 percent, at 1,650.22. The Nasdaq Composite Index was up 27.95 points, or 0.77 percent, at 3,640.57.
Stocks were buoyed by U.S. trade data that suggested economic growth this quarter. Euro zone businesses had their best month in over two years in August as orders increased for the first time since mid-2011, while growth in China's services sector hit a five-month high.
The euro rose against the dollar, up 0.17 percent at $1.3191, while the dollar index was down 0.2 percent at 82.193.
Oil prices edged lower. While Syria is not a big oil producer, investors worry a U.S. strike against the country could spread unrest in the Middle East and disrupt supplies from the region, which pumps a third of the world's crude.
Brent crude fell 86 cents to $114.82 a barrel. U.S. crude fell $1.12 to $107.42 a barrel.
"If the U.S. does strike Syria it is likely to be very limited and not involve any ground troops or escalation. As such, the unintended consequences from such an attack are also likely to be limited," said Dominick Chirichella of Energy Management Institute.
U.S. government debt prices edged up as bargain-minded investors emerged to help stabilize a market that has been on edge over the possibility the Federal Reserve will reduce its bond-buying program.
The benchmark 10-year U.S. Treasury note was flat in price to yield 2.8559 percent.
(Additional reporting by Richard Hubbard in London; Editing by Dan Grebler)
