* Dollar pares losses after worst year start in 3 decades
* Dollar steadies after slump on U.S. devaluation complaint
* Fed seen on hold amid much policy uncertainty
* European shares climb as risk appetite creeps back
* Apple stock up 3 pct after bell on strong iPhone sales
By Marc Jones
LONDON, Feb 1 (Reuters) - World stocks made their first gain in five days on Wednesday as the dollar steadied from turbulence after the Trump administration accused Germany, Japan and China of devaluing their currencies to gain a trade advantage.
The U.S. currency suffered its worst January in three decades after President Donald Trump complained that every "other country lives on devaluation".
Bargain hunters nudged the dollar up 0.15 percent in Asian and European trading, reassuring themselves that the Federal Reserve should signal later that it still plans to raise U.S. interest rates a number of times this year.
Healthy results from a slew of Europe's bluechips also bolstered the mood, lifting its main bourses 0.8 percent and snapping a four-day losing streak for MSCI's 46-country All World index.
Markets remained jittery however. Trump's top trade adviser had also said on Tuesday that Germany was using a "grossly undervalued" euro to exploit its trading partners. The accusations drew rebuttals from German and Japanese officials, but looked likely to run for some time.
"The issue is at what point do investors get concerned that the potential negative shock effects from trade, immigration and geopolitics overwhelm the positives (of potential U.S. stimulus)," said Bluebay asset management head of Credit Strategy David Riley.
There was little reaction to a raft of European data. Sterling barely budged after data showed its fall since June's UK Brexit vote had stoked the sharpest rise in factory costs on record but had offered little boost to exports.
Euro zone factories meanwhile started 2017 by ramping up activity at the fastest rate for nearly six years.
"Optimism about the year ahead has risen to the highest since the region's debt crisis," Chris Williamson, chief business economist at the data's provider IHS Markit, noting that inflation was also picking up.
Overnight in Asia, Japanese investors seemed relieved the yen's 0.5 percent rise against the dollar had not been larger. They nudged the Nikkei up 0.5 percent and MSCI's broadest index of Asia-Pacific shares outside Japan up 0.1 percent in a largely quiet session.
Spread betters were also tipping a modest early bounce for Wall Street's S&P 500 and Dow Jones and a slightly better one for the tech-heavy Nasdaq after Apple reported a strong revival in iPhone sales.