* Wall St little changed as gains in telecom stocks offset
* Fed policy meeting, U.S. GDP in focus
* Emerging market shares hit three-year high
* Oil down, U.S. crude slides on Kansas refinery fire
By Angela Moon
NEW YORK, July 29 World share markets hovered
just below all-time highs on Tuesday as investors drew
encouragement from a rally in China, while Russian stocks
enjoyed some respite after three days of heavy selling.
Investors were reluctant, however, to make bold moves ahead
of a batch of U.S. economic news due this week, including a
Federal Reserve meeting, GDP data on Wednesday and non-farm
payrolls on Friday.
Wall Street was little changed as a rally in the
telecommunications sector lost steam and a lower earnings
forecast from UPS weighed on sentiment.
The Dow Jones industrial average rose 19.21 points or
0.11 percent, to 17,001.8, the S&P 500 gained 1.1 points
or 0.06 percent, to 1,980.01 and the Nasdaq Composite
added 15.68 points or 0.35 percent, to 4,460.58.
The U.S. dollar hit fresh eight-month highs against the euro
and rose slightly against the yen and Swiss franc as
traders awaited U.S. economic data and a potentially more
Analysts said the Fed, which is expected to cut its monthly
bond-buying program by another $10 billion after its two-day
meeting ends Wednesday, may hint at an approaching interest rate
hike in light of U.S. labor market growth.
"People are starting to believe there is going to be
concrete action from the Fed in terms of raising rates," said
Joseph Trevisani, chief market strategist at WorldWideMarkets in
Woodcliff Lake, New Jersey.
U.S. Treasuries prices increased after a
five-year note auction saw solid demand from indirect bidders.
An index of European shares rose 0.3 percent.
Rouble-traded Russian stocks gained despite fresh
fighting in Ukraine and expectations of more EU sanctions. The
dollar-denominated RTS index, however, was down
The European Union agreed to impose broad sanctions against
Russian oil companies, banks and defence firms, by far the
strongest international action yet over Moscow's support for
rebels in eastern Ukraine.
Oil prices fell with U.S. crude leading the decline as a
refinery fire in Kansas curbed demand for benchmark WTI, while
concerns over possible export disruptions stemmed losses for
global marker Brent.
Brent futures pared losses after EU governments agreed to
impose the additional sanctions on Russia. However, the rebound
stalled as concerns eased that the sanctions would impact oil
exports in an oversupplied market.
"I think the market is breathing a sigh of relief. The new
sanctions against Russia don't seem to be a game-changer, as
long as we don't have a supply disruption," said Gene McGillian,
an analyst at Tradition Energy in Stamford, Connecticut.
Brent crude was down 20 cents at $107.37 a barrel.
China shares continued their charge overnight, led by banks.
The country's fifth-biggest bank by assets said it was studying
a plan to sell stakes to private investors. The CSI300
index of leading Shanghai and Shenzhen A-shares added 0.3
percent, its eighth gain in a row, lifting it to a 2014 high.
That, in turn, pushed MSCI's emerging market index
to a three-year high and kept the All World benchmark
within reach of this month's all-time peak.
(Reporting by Angela Moon)