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

(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 (NYSE: MSCI - news) 's All-World Index was up 0.01 percent.

Among deal news on Wall Street, Dollar Tree Inc (NasdaqGS: DLTR - news)

offered to buy rival discount chain Family Dollar Stores Inc (NYSE: FDO - news)

for about $8.5 billion while Zillow Inc (NasdaqGS: Z - news) agreed to

buy Trulia Inc (NYSE: TRLA - news) 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 (Milan: UCG.MI - news) 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)