* 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
* U.S. bond prices fall (Updates to close of U.S. markets)
By Saqib Iqbal Ahmed
NEW YORK, June 29 (Reuters) - Stock markets around the worldrebounded for the second straight day on Wednesday as fearsabout last week's Brexit vote eased and investors wageredcentral banks would ultimately ride to the rescue with morestimulus.
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 recouped more than half of its losses from thetwo-day equities rout sparked by the British referendum, and theS&P 500 index finished 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 284.96 points,or 1.64 percent, to close at 17,694.68, the S&P 500 gained 34.68 points, or 1.7 percent, to finish at 2,070.77 andthe Nasdaq Composite added 87.38 points, or 1.86percent, to end at 4,779.25.
All 10 major S&P indexes gained, led by a 2.3 percent jumpin the energy index.
The chance of more monetary stimulus helped stocksworldwide.
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 2.19 percent, its best two-day rally in 10 months.
Europe's broad FTSEurofirst 300 index gained 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. Both pulled back afterthe settlement, but were still up more than 3 percent.
The U.S. dollar slipped against the euro and sterling for asecond straight day on potential profit-taking and a rebound inrisk appetite.
Sterling, which suffered its biggest one-day fallin modern history on Friday, was up 0.99 percent against thegreenback at $1.3468.
In the bond market, U.S. Treasury debt prices fell asinvestors reduced bond holdings on the rebound in stocks andcommodities.
Benchmark 10-year Treasuries were down 14/32 inprice with a yield of 1.5070 percent.
"The market is taking a break from the Brexit volatility,"said Eric Stein, co-director of the global income group at EatonVance in Boston.
Spot gold was up 0.43 percent $1,318.06 an ounce. (Additional reporting by Hilary Russ, Chuck Mikolajczak, SamForgione, Richard Leong and Barani Krishnan in New York; Editingby Nick Zieminski and Dan Grebler)
Barclays (BARC)
