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* 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 worldrebounded for the second day on Wednesday as fears about lastweek's Brexit vote eased and investors wagered central bankswould ultimately ride to the rescue with more stimulus.
Fading concerns over Britain's vote to exit the EuropeanUnion bolstered oil prices and helped boost energy shares bothin Europe and in the United States.
Wall Street reclaimed some of the ground lost in theaftermath of the Brexit vote and turned positive for the year.
"It's not the end of the world and it never was the end ofthe world and to have these kinds of reactions was ridiculous,"said Jeff Weniger, senior portfolio strategist at BMO PrivateBank in Chicago.
The Dow Jones industrial average rose 285.58 points,or 1.64 percent, at 17,695.3, the S&P 500 gained 36.38points, or 1.79 percent, at 2,072.47 and the Nasdaq Composite 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 2.2percent jump in the energy index.
The chance of more monetary stimulus helped marketsworldwide.
Speaking on Tuesday, Governor Jerome Powell, the firstFederal Reserve policymaker to comment since the vote, saidBrexit had shifted global risks "to the downside," reinforcingexpectations the Fed will not hike U.S. rates this year andcould even cut.
"There are very reasonable expectations from central banksglobally, especially from the U.S. Federal Reserve, the ECB andthe BOE, to provide more liquidity, guidance and clarity tosupport markets," said Stephen Wood, chief market strategist forRussell Investments in New York.
The MSCI world equity index of shares in 45nations, rose 2.13 percent. The index was on pace for its besttwo-day rally in 10 months.
Europe's broad FTSEurofirst 300 index rose 3percent. Higher oil prices and the chance of more monetarystimulus helped Britain's FTSE 100 erase all itspost-Brexit losses.
UK and European banks, a focus of concern since Britainshocked global markets by voting to leave the European Union,extended a recovery from two days of trading that had knockedalmost 40 percent off shares in Barclays and RBS.
Oil prices jumped more than 4 percent, with Brent cruderising above the $50 a barrel mark, after a larger-than-expecteddrawdown in U.S. crude inventories. The potential for an oilworkers' strike in Norway and a crisis in Venezuela's energysector added support to crude futures.
U.S. crude oil futures settled up 4.24 percent, or$2.03, higher at $49.88, while Brent crude rose 4.2percent, or $2.03, at $50.61 per barrel.
Sterling, a big victim of the Brexit vote, was up 0.63percent at $1.3418 against the dollar after having hita 31-year low on Monday.
In the bond market, the U.S. 30-year Treasury yieldapproached record lows on bets of more unconventional stimulusmeasures from major central banks.
"It's a symptom of the flight to safety. People are alsoforced to go out the curve to get yield," Thomas Roth, head ofU.S. Treasury trading at Mitsubishi UFJ Securities USA in NewYork, said of the persistent bid for the long bond.
Spot gold was up 0.8 percent $1,322.62 an ounce. (Additional reporting by Chuck Mikolajczak, Sam Forgione,Richard Leong and Barani Krishnan in New York; Editing by JeremyGaunt and Nick Zieminski)
