* Stocks higher as global economy chugs along
Dollar index falls to 15-month low
* Oil retreats from two-month high (Updates with U.S. market open, changes byline, dateline; previous LONDON)
By Chuck Mikolajczak
NEW YORK, Aug 1 (Reuters) - A gauge of world stocks rose on Tuesday after notching its longest monthly winning streak in over a decade on signs of an improving global economy and solid corporate earnings, while the U.S. dollar edged up from 15-month lows.
Tepid U.S. inflation along with political turmoil in Washington has dented expectations of another Federal Reserve rate hike in coming months. Improving data in other global economies has also served to push the greenback down nearly 11 percent from its January peaks.
Preliminary estimates released on Tuesday by the European Union's statistics agency showed euro zone growth remained robust in the second quarter after a strong reading in the first three months of the year.
A measure of U.S. factory activity fell from a near three-year high in July amid a drop in new orders and consumer spending barely rose in the prior month, setting the economy on a moderate growth path in the third quarter.
"What we are seeing is that, in essence, the world is picking up its growth," said Andres Garcia-Amaya, CEO at Zoe Financial in New York.
"The U.S. is, as well, but in relative terms the acceleration is happening faster abroad, which is dollar negative."
The dollar's decline, low inflation and robust global growth has stoked appetite for stocks, however, with the MSCI ACWI extending its run after the index in July logged its longest streak of monthly gains since 2003-04.
MSCI's gauge of stocks across the globe gained 0.37 percent and the pan-European FTSEurofirst 300 index rose 0.73 percent.
The Dow Jones Industrial Average rose 68.47 points, or 0.31 percent, to 21,959.59, the S&P 500 gained 2.86 points, or 0.12 percent, to 2,473.16 and the Nasdaq Composite added 10.39 points, or 0.16 percent, to 6,358.51.
The dollar rebounded from a 15-month low of 92.777 against major currencies in the wake of the data, although the outlook remained cautious following the ouster of recently hired White House communications chief Anthony Scaramucci.
The dollar index rose 0.17 percent, with the euro down 0.35 percent to $1.1798.
The softer dollar is expected to benefit earnings for U.S. companies. Thomson Reuters data through Tuesday morning shows second-quarter earnings growth of 10.9 percent, with 72 percent of S&P 500 companies topping expectations.
Apple Inc, the largest U.S. company by market cap, is scheduled to report after the closing bell on Tuesday.
Bets on another quarter-point U.S. rate increase this year have fallen to about 47 percent, according to Thomson Reuters data.
In commodities, oil slipped from a two-month high as ample global supplies countered strong demand and expectations for another drop in U.S. crude inventories.
U.S. crude fell 1.67 percent to $49.33 per barrel and Brent was last at $51.85, down 1.65 percent on the day.
(Reporting by Chuck Mikolajczak; Editing by Nick Zieminski)