By Jeremy Gaunt, European Investment Correspondent

LONDON (Reuters) - World stocks rose robustly on Wednesday as worries about oil receded, U.S. consumer confidence stabilised and corporate earnings bolstered investor sentiment.

The dollar was barely changed against a basket of major currencies and euro zone government bond prices firmed.

European shares were up, with the FTSEurofirst 300 gaining more than 1 percent. Japan's Nikkei average .N225 earlier gained around 1.6 percent. Wall Street looked set for a moderately positive open.

MSCI's main world stock index .MIWD00000PUS was up 0.7 percent and its emerging market counterpart .MSCIEF gained around 1.2 percent.

A key factor in the gains was the recent fall in oil prices and other commodities.

"The oil's descent is nice. The month-to-date ... fall in commodities is even better," Lehman Brothers said in a note to clients.

New York crude oil was down 78 cents at around $121.40 a barrel, reflecting a major slide from its record above $147 hit two and a half weeks ago.

The fall has eased concerns about global inflation and raised prospects that central banks will be able to cut interest rates if needed to stimulate economies.