(Updates with open of U.S. markets, adds dateline, byline) * MSCI world index recovers as Wall St edges up * Europe share gauge rises, Germany’s DAX jumps * U.S. dollar index little changed, gold higher * Key central bank meetings this week in U.S., Britain, Japan NEW YORK/LONDON, Sept 21 (Reuters) - World stock markets stabilized on Tuesday while the U.S. dollar held relatively steady a day after heavy selling in equities, as investors assessed the level of contagion stemming from distress of debt-saddled developer China Evergrande. MSCI’s gauge of stocks across the globe gained 0.19%, following Monday’s biggest percentage drop in two months. European indexes rose solidly while Wall Street vacillated in early trade. Price moves in bonds and currencies were relatively subdued. On Monday, safe-haven assets drew bids as investors became risk averse. Investors were still focused on the situation at Evergrande, where persistent default fears eclipsed efforts by the debt-laden group’s chairman to lift confidence as Beijing showed no sign it would intervene to stem any domino effects across the global economy. “There are still issues that the market is dealing with,” said David Joy, chief market strategist at Ameriprise Financial in Boston. “But stabilization is a good thing after the downdraft that we had yesterday.” On late-morning trade on Wall Street, the Dow Jones Industrial Average rose 45.85 points, or 0.13%, to 34,016.32, the S&P 500 gained 5.59 points, or 0.13%, to 4,363.32 and the Nasdaq Composite added 45.55 points, or 0.31%, to 14,759.45.. The pan-European STOXX 600 index rose 0.74%, with Germany’s DAX up 1.3%. Canada’s main stock index gained as Prime Minister Justin Trudeau’s limited victory in the federal election raised hopes that his government would keep the stimulus taps open. Central bank meetings in the United States and elsewhere in the world were soon to take center stage for markets, with the Federal Reserve meeting due to conclude on Wednesday as investors look for when it will ease its bond-buying program. “Central banks rightly need to think about the ways they withdraw from these historically high levels of monetary accommodation, but the task is being made much more difficult by Evergrande and by fiscal blockages in the U.S.,” GSFM investment strategist Stephen Miller said. In currencies, the dollar index rose 0.025%, with the euro down 0.03% at $1.1721. Benchmark 10-year U.S. Treasury notes last fell 2/32 in price to yield 1.3141%, from 1.309% late on Monday. U.S. crude fell 0.46% to $69.97 per barrel and Brent was at $73.72, down 0.27% on the day. Spot gold added 0.5% to $1,773.46 an ounce.