GLOBAL MARKETS-Shares steady, dollar edges lower ahead of key U.S. events

Mon Jul 28, 2014 2:37pm EDT

(Updates prices, adds quotes)
    * Russia stocks tumble anew after new sanctions
    * Investors hesitant to make bets ahead of GDP, payrolls
data
    * Fed expected to maintain dovish tone on Wednesday

    By Angela Moon
    NEW YORK, July 28 (Reuters) - World stock markets were
little changed on Monday while the U.S. dollar edged lower
against a basket of major currencies ahead of a ream of U.S.
data and events this week.
    MSCI's All-World Index erased earlier losses
to trade flat as major U.S. stock indexes turned positive. 
    But equity investors were hesitant to make big bets on
concerns over new European sanctions against Moscow and ahead of
Wednesday's release of U.S. second-quarter gross domestic
product. The calendar also includes a Federal Reserve policy
announcement on Wednesday and U.S. nonfarm payrolls Friday.
    The U.S. dollar edged lower against a basket of major
currencies, halting last week's strongest advance since March
but still near six-month highs. The euro last traded at
$1.3440.
    The yield on U.S. two-year Treasuries notes rose to its
highest in 2-1/2 weeks early Monday afternoon after a weak $29
billion auction of new two-year notes, part of this week's $93
billion in fixed-rate debt government debt supply. 
    Short- and intermediate-dated debt has underperformed on
expectations the Fed is likely to begin raising rates next year
as the economy improves. 
    Economists forecast U.S. GDP grew 3 percent in the second
quarter after a sharp contraction of 2.9 percent in the first
quarter, and expect U.S. employers to have added 233,000 jobs in
July, according to Reuters polls.
    The Dow Jones industrial average rose 30.44 points or
0.18 percent, to 16,991.01. The S&P 500 gained 1.95
points or 0.1 percent, to 1,980.29 and the Nasdaq Composite
 added 2.67 points or 0.06 percent, to 4,452.23.
    Russian markets tumbled for a third straight session after
the European Union reached an outline agreement on its first
economic sanctions on Russia since the downing of a Malaysian
airliner. 
    Moscow's dollar-denominated RTS index slumped 2.5
percent, the rouble-traded MICEX fell 1.9 percent and the
rouble dropped half a percent against both the dollar
 and the euro. 
    "We have seen Germany stepping up rhetoric on tougher
sanctions on Russia," said Vasileios Gkionakis, Global Head of
FX Strategy for UniCredit in London. "Saying stability and peace
is the top priority rather than economic interests are strong
words." 
    An index of European shares lost 0.2 percent.
    Brent crude oil slipped as forecasts for ample supplies in
the Atlantic basin and weak demand in Europe and Asia mitigated
fears of escalating tension in Ukraine and the Middle East.
    September Brent fell 73 cents at $107.66 a barrel
while U.S. crude futures for September fell 40 cents to
$101.69, after ending last week 1 percent lower.

 (Reporting by Angela Moon; Editing by Nick Zieminski)
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