* World equities rise, helped by upbeat company results
* Greek, U.S. debt woes weigh; European yields rise
* Weaker dollar propels gold to record high; oil rises
* China warns on inflation dangers, forex reserves (Updates market action, adds fresh quote)
By Richard Leong
NEW YORK, April 19 (Reuters) - World stocks rose on Tuesday, recouping the prior day's losses, but nagging debt worries on both sides of the Atlantic and new signals of inflation dangers in China curbed appetite for risk.
A weaker dollar propelled gold
Investors dipped their toes back into stocks and other risk assets in part on solid company results, a day after Standard & Poor's jolted markets when the debt rating agency warned that political gridlock in Washington is impeding work on paring the huge federal debt load.
Speculation about a Greek debt restructuring as early as this summer has also crimped investor sentiment.
"We are getting a tug-of-war between the macros and micros. We are in the middle of the earnings season with these macro shocks," said Brett Hryb, senior portfolio manager at Manulife Asset Management in Toronto.
MSCI's all-country world stock index <.MIWD00000PUS> rose 0.6 percent, retracing some of Monday's 1.6 percent loss, which was the biggest one-day drop in a month.
Wall Street stocks <.DJI> <.SPX> <.IXIC> rose 0.4 percent
in choppy trading. Better-than-expected results from investment
bank Goldman Sachs
Solid earnings from luxury goods makers LVMH
Japan's Nikkei <.N225> closed down nearly 1.3 percent in the wake of the prior day's losses in the United States and Europe.
Investor unease persisted over a possible Greek debt restructuring that could further strain the euro zone.
Greece sold 1.6 billion euros of three-month debt but was forced to pay a yield of more than 4 percent, more than quadruple what Germany -- the euro zone's strongest member -- pays on similar obligations.
DOLLAR FALLS
Standard & Poor's rattled investor confidence on Monday when it changed its outlook on the United States to negative from stable, threatening the future of the prized AAA credit rating for the world's top economy.
In currency trading on Tuesday, the U.S. dollar slipped 0.6 percent against a basket of major currencies <.DXY> after making headway the previous day.
Monday's dollar gains came on a rush for safe havens despite the risk of S&P downgrading U.S. debt in two years if Washington fails to achieve a budget plan that relies less on debt.
S&P's warning intensified scrutiny of the U.S. budget deficit and the political fight to slash it. The deficit is a key element in the global imbalances that currently worry many investors and policymakers.
There was no direct reaction to the S&P move on Tuesday from Beijing, which holds vast reserves of U.S. Treasuries. However, the head of China's central bank said the country should diversify investments as its some $3 trillion of foreign exchange holdings had grown too large.
Another Chinese rate setter said inflation pressures gave further scope for a rise in banks' reserve requirements following seven increases -- together with four raises in benchmark interest rates -- since October.
The euro recovered from the previous day's sell-off, helped by encouraging economic data. [FRX/]
The single currency rose 0.6 percent to $1.4337
Lingering worries over the cost to bail out peripheral countries exerted pressure on the European debt market, which lagged U.S. Treasuries. Ten-year Greek bond yields
The benchhmark U.S. 10-year note's yield