World stocks rose from the previous day's three-month low on Thursday, while the dollar and government bonds fell, as some European corporate quarterly results were better than the most pessimistic expectations.

Nestle the world's biggest food group, beat forecasts with underlying sales growth of 8.3 percent in 2008 and it was cautiously upbeat for 2009.

BNP Paribas 's fourth-quarter loss of 1.37 billion euros ($1.73 billion) was in line with last month's guidance. Austria's Raiffeisen International , eastern Europe's second biggest bank, reported a 17 percent rise in 2008 net profits.

While European stocks trimmed early gains, a rise in U.S. stock futures helped improve overall investor morale. Oil prices also rose.

We've got (U.S.) stock futures pointing higher and that's going to help risk appetite so we're seeing the dollar reverse course a little this morning, said Rabobank currency strategist Jeremy Stretch.

MSCI world equity index <.MIWD00000PUS> rose 0.4 percent, having hit a three-month low on Wednesday. The FTSEurofirst 300 index of leading European shares <.FTEU3> was up 0.1 percent. Emerging stocks <.MSCIEF> gained 0.6 percent.

U.S. crude oil rose 1.7 percent to $35.20 a barrel.

Euro zone government bonds fell, following losses in U.S. Treasuries, after President Barack Obama's $275 billion plan to prop up the housing market fanned expectations that the government would increase public borrowing.

Another day, another initiative, Calyon said in a note to clients.

This is how it sometimes feels, and it is perhaps no surprise that markets are becoming a bit exhausted at trying to discern the impact of whatever the latest announcement, policy or program might be.

The March bund futures fell 40 ticks.

The dollar <.DXY> fell 0.7 percent against a basket of major currencies.

The yen rose a quarter percent to 93.57 per dollar, paring losses from the previous day's six-week low.

The Bank of Japan extended its deadline for buying commercial paper to help corporate funding after leaving its key policy rate unchanged at 0.1 percent as expected.

Gold fell to $972.30 an ounce, having hit a seven-month peak of $985.95 earlier.

(Additional reporting by Kirsten Donovan, editing by Swaha Pattanaik)