GLOBAL MARKETS-Global stock index near flat while bond yields rise, oil prices dip

By Sinéad Carew and Dhara Ranasinghe

NEW YORK/ LONDON, May 5 (Reuters) - MSCI's global equities index was slightly lower on Monday after a long run of gains while oil prices fell on the prospect of production increases and U.S. bond yields rose after economic data at the start of a busy week for central banks.

In U.S. Treasuries, yields rose after data showed U.S. services sector growth in April was boosted by increased orders.

However prices paid by businesses for materials and services reached the highest level in more than two years, indicating tariffs have added to inflationary pressures.

Gold prices rallied, driven by a weaker U.S. dollar and safe-haven demand ahead of the U.S. Federal Reserve's interest rate policy decision due later in the week.

MSCI's gauge of stocks across the globe .MIWD00000PUS fell 0.67 points, or 0.08%, to 848.58 after rising for nine days of gains.

But overall trading was subdued by public holidays in countries including Britain, China and Japan. The pan-European STOXX 600 .STOXX index rose earlier closed up 0.16%.

On Wall Street, all three major averages regained some lost ground, but the S&P 500 .SPX was heading for its first decline after nine straight days of gains.

"Stocks are taking somewhat of a breather today after two weeks of effectively moving higher from the early April lows," said Sahak Manuelian, managing director, head of equity trading at Wedbush Securities, adding that trading volume was low.

Manuelian noted that while trading volume was relatively low, equities regained some lost ground as the session wore on.

Equities had opened lower on renewed uncertainty about U.S. President Trump's trade policies after he announced a 100% tariff on movies produced outside the U.S. but offered little clarity on how the levies would be implemented.

"Markets like certainty and investors woke up this morning with more uncertainty as to what might happen with tariffs," said Adam Sarhan, CEO of 50 Park Investments in Orlando, Florida.

The movie tariffs news hit shares in video streaming providers, such as Netflix NFLX.O and Paramount Global PARA.O.

Sarhan said investors are concerned more industries could be targeted "if investors wake up to another 100% or 200% levy on some other industry which is integral to our economy."

Trump said on Sunday that the United States was meeting with many countries, including China, about trade and that his main priority with China was to secure a fair deal.

Optimism around a potential de-escalation of trade tensions between the U.S. and China has boosted markets in recent days, with European shares trading just below levels seen before Trump's April 2 major tariff announcement roiled markets.

By 3:11 p.m. ET (1911 GMT), the Dow Jones Industrial Average .DJI rose 31.67 points, or 0.08%, to 41,349.10, the S&P 500 .SPX fell 16.27 points, or 0.29%, to 5,670.40 and the Nasdaq Composite .IXIC fell 64.77 points, or 0.36%, to 17,912.96.

In energy markets, oil prices fell more than $1 a barrel after OPEC+ decided over the weekend to expedite oil output hikes, spurring investor concerns of more supply when the outlook for demand is uncertain.

U.S. crude CLc1 settled down $1.16 or 1.99% at $57.13 a barrel and Brent LCOc1 ended at $60.23 per barrel, down $1.06 or 1.73% on the day.

In currency markets, the Taiwan dollar TWD= marked a second consecutive session of sharp gains against the U.S. dollar, which touched a low of 28.815 against Taiwan's dollar and was last at 28.990.

The rise of the Taiwan currency stoked speculation of a revaluation of Asian currencies to win U.S. trade concessions.

The dollar index =USD, which measures the greenback against a basket of major currencies including the yen and the euro, fell 0.1% to 99.77.

The euro EUR= was up 0.22% at $1.1319 while against the Japanese yen JPY=, the dollar weakened 0.79% to 143.79.

In U.S. Treasuries, the yield on benchmark U.S. 10-year notes US10YT=RR rose 1.7 basis points to 4.339%, from 4.32% late on Friday. The 30-year bond US30YT=RR yield rose 2.8 basis points to 4.8244% from 4.795%.

The 2-year note US2YT=RR yield, which typically moves in step with interest rate expectations for the Federal Reserve, fell 0.1 basis points to 3.839%, from 3.84% late on Friday.

In precious metals, spot gold XAU= rose 2.63% to $3,325.49 an ounce. U.S. gold futures GCc1 rose 2.42% to $3,310.10 an ounce.