NEW YORK (Reuters) - World stocks edged up and oil advanced on Wednesday as investors tried to position themselves ahead of a Federal Reserve Chairman Ben Bernanke's key speech.
The gains follows weeks of market turmoil, with disappointing U.S. economic news and escalating worries about the debt crisis in Europe hitting sentiment. Benchmark stock indexes are on track for their worst month since the fall of 2008, after the Lehman Brother fall.
World stocks as measured by MSCI <.MIWD00000PUS> were up 0.1 percent on the day but were on track for a 10.3 percent year-to-date loss. The U.S. benchmark Standard & Poor's 500 <.SPX> index was nearly flat after the opening.
European shares were also higher, though Japanese shares sold off following a Moody's downgrade of the country's sovereign debt.
Tokyo's Nikkei average <.N225> closed down more than 1 percent. Overseas investors in particular reacted negatively to Moody's Investors Service's downgrade of Japan's sovereign debt rating.
Although U.S. stocks were near flat, they were supported by stronger-than-expected U.S. durables data. The U.S. government data showed new orders for long-lasting U.S. manufactured goods rose more than expected in July on strong demand for aircraft and motor vehicles.
"The data gives us a leg up going into Bernanke's speech and moderates some of the negative feeling that has been around," said Roger Volz, director of cash equities at BGC Financial in New York.
Speculation is widespread in financial markets that Bernanke will use his Friday speech at a central banker conference in Jackson Hole, Wyoming, to signal a new monetary offensive to support a faltering U.S. economy.
Many analysts think Bernanke is most likely to outline gradualist measures, which would disappoint those looking for a big bang approach such as a fresh round of bond buying, known as QE3.
The Fed chairman looks set to discuss ways the central bank could tweak the Fed's balance sheet as a means to put further pressure on medium and long-term interest rates and anchor them at low levels. These could be implemented in September and October at coming Fed meetings.
The Dow Jones industrial average <.DJI> was up 29.48 points, or 0.26 percent, at 11,206.24. The Standard & Poor's 500 Index <.SPX> was up 2.35 points, or 0.20 percent, at 1,164.70. The Nasdaq Composite Index <.IXIC> was up 4.11 points, or 0.17 percent, at 2,450.17.
Among commodities, Brent October crude rose 30 cents to $109.61 a barrel.
The dollar was down 0.1 percent against a basket of major currencies <.DXY>.
Major currencies were largely confined to tight ranges as markets sat tight ahead of the Bernanke speech.
(Additional reporting by Ryan Vlastelica in New York and Neal Armstrong in London)
(Reporting by Caroline Valetkevitch and Jeremy Gaunt; Editing by Theodore d'Afflisio)
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