GLOBAL MARKETS-Shares, dollar steady ahead of key U.S. data, Fed meeting

Mon Jul 28, 2014 4:43pm EDT

(Updates with U.S. market close)
    * Russia stocks tumble again after new sanctions
    * Investors hesitant to make bets ahead of U.S. 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 traded mostly
flat against a basket of major currencies ahead of key U.S.
economic reports and events this week.
    Wall Street ended flat as the latest deal news offset losses
following soft data on the housing market and services sector.
The market may also be hitting resistance with the Dow Jones
industrial average sitting just below 17,000 and the S&P 500
near 2,000.
    "Technically, we are battling round numbers that I think
give investors reason to pause," said Todd Salamone, senior vice
president of Research, Schaeffer's Investment Research in
Cincinnati.
    The U.S. dollar traded mostly flat against a basket of major
currencies, halting last week's advance but still hovering near
six-month highs.
    Investors and traders were hesitant to make bold moves 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 data Friday.
    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 22.02 points or
0.13 percent, to 16,982.59, the S&P 500 gained 0.57
points or 0.03 percent, to 1,978.91 and the Nasdaq Composite
 dropped 4.66 points or 0.1 percent, to 4,444.91.
    MSCI's All-World Index was up 0.01 percent.
    Among deal news on Wall Street, Dollar Tree Inc 
offered to buy rival discount chain Family Dollar Stores Inc
 for about $8.5 billion while Zillow Inc agreed to
buy Trulia Inc for $3.5 billion in stock. 
    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 in rebel-held eastern Ukraine. 
    Moscow's dollar-denominated RTS index slumped 3
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.
    The U.S. dollar index, which measures the dollar
against a basket of six major currencies, was last flat at
81.030. U.S. government bond yields edged higher after dropping
on Friday, with the benchmark 10-year U.S. Treasury note
 down 6/32 in price to yield 2.49 percent.
    Oil prices dipped as signs of excess supplies of North Sea
and West African crude and weak demand in Europe and Asia offset
fears of escalating tensions in Ukraine and the Middle East.
    September Brent lost 82 cents to settle at $107.57 a
barrel, after reaching a low of $107.01 earlier in the session
while U.S. crude futures for September delivery lost 42
cents to settle at $101.67, up from an intraday low of $100.90.

 (Reporting by Angela Moon; Editing by Nick Zieminski and James
Dalgleish)
A couple walks along the rough surf during sunset at Oahu's North Shore, December 26, 2013. REUTERS/Kevin Lamarque

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