* German, Chinese PMI data less gloomy than expected
* Hope for more Fed stimulus also buoys markets
* Euro rises against dollar
* Gold retreats after hitting fresh record high (Updates with U.S. markets open, changes dateline, previous LONDON)
NEW YORK, Aug 23 (Reuters) - The euro advanced on Tuesday as German and Chinese factory data relieved some worries about a slowdown in global growth, while world stocks rose.
Bank of America
Focus also remained on whether the Federal Reserve could offer more economic stimulus. U.S. bond prices were lower.
Although euro zone and Chinese PMI data showed economic activity was likely to slow, they indicated there was still some growth. For details see [ID:nL4E7JN0JB], [ID:nL9E7I401I] and [ID:nL9E7I401H].
Markets mostly shrugged off much-weaker-than-expected readings of the ZEW business sentiment index for Germany, the common currency bloc's largest economy.
"Any data that just hints that the world is not ending is going to be well received by the markets," Ian Richards, European equity strategist at RBS, said.
U.S. stocks opened higher but pared gains shortly after that, while world stocks, as measured by the MSCI All-Country World Index <.MIWD00000PUS>, were up 1.1 percent and the FTSEurofirst 300 <.FTEU3> index of top European shares was up 0.68 percent.
On Wall Street, the Dow Jones industrial average <.DJI> was up 111.33 points, or 1.03 percent, at 10,965.98. The Standard & Poor's 500 Index <.SPX> was up 12.42 points, or 1.11 percent, at 1,136.24. The Nasdaq Composite Index <.IXIC> was up 35.74 points, or 1.52 percent, at 2,381.12.
Financial markets have been struggling in recent weeks with fears of another U.S. recession and of growing debt problems in the euro zone, which could begin to affect the global economy.
The euro was last up 0.2 percent against the dollar
Gold prices retreated from Monday's record highs. Spot gold
Brent crude
In the U.S. Treasury market, the benchmark 10-year note