World stock markets were little changed yesterday while the US dollar edged lower against a basket of major currencies ahead of a ream of US data and events this week.

MSCI’s All-World Index erased earlier losses to trade flat as major US 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 US second-quarter gross domestic product. The calendar also includes a Federal Reserve policy announcement on Wednesday and US nonfarm payrolls Friday.

The US 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 US two-year Treasuries notes rose to its highest in two-and- a-half weeks early yesterday 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 US GDP grew three per cent in the second quarter after a sharp contraction of 2.9 percent in the first quarter, and expect US 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 per cent, to 16,991.01.

The S&P 500 gained 1.95 points or 0.1 per cent, to 1,980.29 and the Nasdaq Composite added 2.67 points or 0.06 per cent, 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 per cent, the rouble-traded MICEX fell 1.9 per cent 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 per cent.

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.

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