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GLOBAL MARKETS-World stocks mark 12th month of gains, dollar flat

* World share index sets record 12th month of gains

* European stocks hit 5-1/2-month high

* Brent crude hovers near two-year highs (Updates with U.S. market close, oil settlement prices)

NEW YORK, Oct 31 (Reuters) - World stocks advanced on Tuesday and set a record twelfth straight month of gains as Europe outpaced the advance on Wall Street, while the dollar was flat but saw its best month since February.

Wall Street ended the session in positive territory, with the Nasdaq scoring the best day of the three major indexes.

Apple shares, up 1.39 percent, and strong earnings from Oreo cookie maker Mondelez, up 5.42 percent, boosted the S&P 500. Qualcomm shares weighed, down 6.68, on reports Apple would not use its modem chips in iPhones and iPads from next year.

European stocks closed with a 5 1/2-month high and a 1.8-percent gain for October, buoyed by data that showed euro zone growth of 2.5 percent year-on-year and unemployment at its lowest since early 2009.

Economic data in the United States was also positive as consumer confidence jumped to a near 17-year high in October, with households upbeat about the labor market and business conditions.

Apple shares gained after the first reviews of its iPhone X gave it mostly positive marks. The phone is scheduled for release on Friday, a day after the company is set to report earnings. Also on the tech front, Facebook was scheduled to post results on Wednesday.

The Dow and S&P scored their seventh straight month of gains while the Nasdaq gained for a fourth straight month. For October, the Dow gained 4.3 percent, the S&P rose 2.2 percent and the Nasdaq gained 3.6 percent - the best monthly performance for each index since February.

However, investors also exercised caution ahead of announcements from the Bank of England and U.S. Federal Reserve, as well as the expected nomination of a new Fed chair on Thursday and Friday's U.S. jobs report.

"The macro data is getting better, the market is prepared for Jerome Powell, the market is also prepared for Fridays payrolls. I also think the market is ready for what the (Fed) says tomorrow," said Ken Polcari, Director of the NYSE floor division at ONeil Securities in New York.

"I dont think there is anything out there that could derail the market from a point of view it doesnt already expect."

The Dow Jones Industrial Average rose 28.5 points, or 0.12 percent, to 23,377.24, the S&P 500 gained 2.43 points, or 0.09 percent, to 2,575.26 and the Nasdaq Composite added 28.71 points, or 0.43 percent, to 6,727.67.

The dollar index, which measures the greenback against major currencies, was flat, with the euro unchanged at $1.1649.

U.S. Treasury prices were steady. Benchmark 10-year notes last fell 2/32 in price to yield 2.3775 percent, from 2.37 percent late on Monday.

RECORD RUN

The MSCI's 47-country 'All World' index topped its 2003 run of 11 straight months of gains. It gained 0.13 percent Tuesday. The pan-European FTSEurofirst 300 index rose 0.24 percent.

Oil prices advanced modestly as the prospect of increasing U.S. exports dampened bullish sentiment that has driven Brent to more than two-year highs above $60 per barrel.

U.S. crude settled up 0.42 percent at $54.38 per barrel and Brent was last at $61.37, 0.77 percent on the day.

(Reporting by Chuck Mikolajczak; Editing by Nick Zieminski)