* Rising U.S. durable goods orders, housing prices bolster sentiment
* China's central bank soothes credit worries, lifting shares
* Government debt prices slip on economic data
* Oil rises above $101 on easing liquidity fears, Canada floods
By Herbert Lash
NEW YORK, June 25 (Reuters) - The dollar recovered from early losses and global equity markets rose on Tuesday after reports on manufacturing, business spending and housing added to recent signs of a pick-up in U.S. economic activity.
Orders for durable goods rose more than expected in May and a gauge of planned business spending gained for a third straight month, while existing single-family home prices posted their biggest rise in seven years in April.
In another better-than-expected report, the Conference Board's U.S. consumer confidence index rose in June, to 81.4 from a downwardly revised 74.3 in May, the private business research group reported.
The data was greeted with a touch of sarcasm as there is still apprehension among investors over the timing of the Federal Reserve's plans to ease back on its bond-buying program, a move that has rocked financial markets in recent weeks.
"Everyone loves it. The market is great, housing prices up 12 percent, durables goods up better than expected; nobody is worried about tapering anymore," said Ken Polcari, director of the NYSE floor division at O'Neil Securities in New York.
Global markets tracked by MSCI's all-country world equity index were up 0.64 percent, while the FTSEurofirst 300 index FTEU3> of leading European companies rose 1.36 percent, recovering some of the 5.5 percent it lost in the previous three trading days.
The Dow Jones industrial average was up 58.28 points, or 0.40 percent, at 14,717.84. The Standard & Poor's 500 Index was up 6.24 points, or 0.40 percent, at 1,579.33. The Nasdaq Composite Index was up 8.64 points, or 0.26 percent, at 3,329.40.
The pause in the market's recent rout began when two Fed policymakers on Monday downplayed the notion of an imminent end to the central bank's money-printing and said the market reaction was not yet a cause for concern.
Asian markets then capped a day of wild swings, during which Chinese stocks plunged to their lowest since the global financial crisis began, with a late rally on hopes authorities in China would step in to prevent a crisis.
China's central bank fueled the talk at a news briefing where it sought to allay fears of a credit squeeze by committing to guide interest rates to "reasonable" levels after they had been allowed to spike over the past week.
The dollar extended gains against the yen and euro on Tuesday after data showed sales of new U.S. single-family homes rose to their highest in nearly five years in May, confirming the housing market's strengthening tone.
The dollar rose against the yen to 97.77 yen from about 97.61 yen before the data, up 0.05 percent on the day.
The euro fell to a session low of $1.3069 from the $1.3102 it traded at before the data. It was trading at 1.3080, down 0.28 percent.
Prices of U.S. Treasuries edged down slightly in choppy trade, while German Bund futures pared their early gains on news of the manufacturing data.
The benchmark 10-year U.S. Treasury note was down 12/32, the yield at 2.5894 percent.
Bund futures traded at 140.34, just 3 ticks higher from Monday's close, compared with about 140.75 before the data.
Oil was above $101 a barrel, rebounding from a three-week low, as investor concern eased about a liquidity crunch in China and as Canadian pipeline closures threatened exports to the United States.
Brent crude slipped 7 cents to $101.09 a barrel. U.S. oil slid 31 cents to $94.88.
"Stock markets are up and commodity prices are up across the board," said Carsten Fritsch, analyst at Commerzbank in Frankfurt, adding that the Chinese officials' comments had prompted a change in market sentiment.