Despite the improved market sentiment, which also encouraged some selling of safe-haven US Treasury debt, stocks trimmed gains later as technology shares plummeted on Wall Street.

The euro weakened further, hurt by persistent concerns over the euro zone economy.

At around noon in New York, the Dow Jones Industrial Average was up 6.32 points, or 0.06 percent, at 10,219.94, while the Standard & Poor's 500 Index gained 1.27 points, or 0.12 percent, to 1,072.96. The Nasdaq Composite Index dropped 8.67 points, or 0.40 percent, to 2,171.09.

The MSCI All-Country World equity index rose 0.19 percent while the FTSEurofirst 300 index of top European shares closed up 0.67 percent, following three consecutive session of losses.

US crude oil prices fell 75 cents, or 1.02 percent, to $73.07 per barrel, as a stronger dollar made it more expensive for investors using other currencies to buy the commodity.

The dollar rose 0.1 percent against a basket of major currencies measured by the US Dollar Index.

The euro continued its slide, down 0.15 percent to $1.2686, as it was hurt by concerns about the euro zone economy and prospects of loose monetary policy for an extended period.

The number of investors betting against the euro has increased, data from the Commodity Futures Trading Commission showed.

The Australian dollar reversed losses after being dented by political uncertainty from an inconclusive general election.

The currency fell earlier after neither major party in Australia won an overall majority in Saturday's election.

The Aussie dollar traded as low as $0.8864 but it recouped losses to trade at $0.8929, helped by buying from real-money accounts.