World shares gained for a second day on Tuesday on increasing speculation of fresh action to tackle Europe's debt crisis at an informal talks later this week, even as the euro fell on skepticism much would come of the meeting.
European shares gained more than 1 percent and Wall Street opened higher. Bond prices fell on both sides of the Atlantic on speculation European leaders may devise new measures to foster growth in the euro zone and restore market confidence.
An informal supper summit of European Union leaders on Wednesday also is expected to discuss the idea of euro area bonds jointly underwritten by all euro zone member states.
However, Germany's long-standing opposition is unlikely to change, particularly as Germany has dismissed the French-led call for the eurozone to issue common bonds.
"Tomorrow's meeting will not deliver any landmark solution. The market is likely to be more prone to disappointment," said Matteo Regesta, a strategist at BNP Paribas.
"There's this delusion of a quick fix either via monetary policy with the European Central Bank or via some kind of fiscal decision but unfortunately this won't happen," Regesta said.
The Dow Jones industrial average was up 4.76 points, or 0.04 percent, at 12,509.24. The Standard & Poor's 500 Index was up 2.73 points, or 0.21 percent, at 1,318.72. The Nasdaq Composite Index was up 4.45 points, or 0.16 percent, at 2,851.66.
The FTSE Eurofirst index of top European shares was up 1.3 percent at 987.25 points, extending a recovery from five-month lows hit on Monday.
MSCI's all-country global equity index was up 0.6 percent to 303.22.
The euro fell amid skepticism the talks would yield much progress.
The euro was down 0.4 percent against the dollar at $1.2813.
The benchmark 10-year U.S. Treasury note was down 13/32 in price to yield 1.79 percent.
Meanwhile the dollar gained about 0.3 percent against a basket of currencies, boosted partly by a fall in the yen after the Fitch ratings agency downgraded Japan on worries about its high level of public debt.
The German June Bund future fell 36 ticks at 143.21, while German 10-year yields rose 4 basis points at 1.47 percent.
Brent crude, which had earlier risen to over $109 a barrel, eased back on signs of a deal with Iran to boost its cooperation over investigating its nuclear program.
Major powers meet in Iran on Wednesday to discuss its nuclear programme after the U.S. Senate on Monday unanimously approved a package of economic sanctions on the country's oil sector.
Brent fell 2 cents to $108.79 a barrel, while U.S. light sweet crude oil fell 55 cents to $92.02 a barrel.
