GLOBAL MARKETS-Global stocks mixed as investors brace for Fed meeting, tariff deadline

By Samuel Indyk and Gregor Stuart Hunter

LONDON, July 30 (Reuters) - Global stocks struggled for clear direction on Wednesday ahead of the Federal Reserve's policy announcement later in the day, with investors cautious after two days of trade talks between the U.S. and China concluded without any major breakthroughs.

Treasury yields and the dollar were also little changed as the market anticipated the Fed will keep rates on hold despite pressure from the White House to lower borrowing costs.

Europe's STOXX 600 .STOXX was flat, with blue-chip indexes in Frankfurt .GDAXI, Paris .FCHI and London .FTSE all hovering around steady.

Early gains for MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS petered out. Japan's Nikkei 225 .N225 ended the session little changed.

Investors await several central bank decisions, economic reports and corporate earnings over the coming days, as well as U.S. President Donald Trump's August 1 tariff deadline.

Although the Federal Reserve is expected to leave interest rates unchanged at the conclusion of its two-day policy meeting later on Wednesday, analysts have predicted some central bank officials who favour lower borrowing costs could voice rare dissent.

"I'm not expecting a rate cut," said George Lagarias, chief economist at Forvis Mazars.

"They're going to hint a rate cut in September, but they're not going to commit themselves to it."

The yield on the benchmark 10-year Treasury note US10YT=RR was last flat on the day at 4.336%. It dropped to its lowest level since July 3 on Tuesday at 4.32%. The two-year yield US2YT=RR, which is more sensitive to change in interest rate expectations, was little changed at 3.875%.

With the Bank of Japan expected to keep policy unchanged on Thursday, the markets will analyse its comments to gauge when the next rate increase will come after a trade deal between Japan and the U.S. cleared the way for the bank to resume rate hikes.

Some of the negotiations with countries seeking to avert Trump's punitive tariffs are expected to continue up to the deadline.

India is among those bracing for higher U.S. tariffs - likely between 20% and 25% - on some exports as it holds off on fresh trade concessions ahead of the August 1 deadline, two Indian government sources said.

Meanwhile, three South Korean cabinet-level officials met with U.S. Commerce Secretary Howard Lutnick in a last-ditch push for a deal.

CORPORATE EARNINGS CONTINUE

Earnings were mixed on Wednesday. UBS Group UBSG.S reported profits that exceeded analysts' expectations, while HSBC 0005.HK profits missed estimates as its losses from China mounted.

German sportswear maker Adidas ADSGn.DE and French luxury group Kering PRTP.PA both flagged that tariffs were having an impact on costs and pricing.

U.S. tech megacaps Microsoft MSFT.O and Meta META.O are due to report earnings on Wednesday that will set the tone for the rest of the week and the earnings season.

"It's been a solid U.S. reporting season so far, but these megacap names need to run it hot and blow the lights out, given the bar to please has been sufficiently raised," said Chris Weston, head of research at Pepperstone.

In currency markets, the dollar index =USD, which measures the currency against six others, fell less than 0.1% after hitting a five-week high on Tuesday.

The euro EUR=EBS was up 0.1% against the dollar. The U.S. currency was down 0.3% to 147.96 yen JPY=EBS.

Oil prices fell. Brent crude futures LCOc1 eased 0.4% to $72.20 a barrel and U.S. crude futures CLc1 were down 0.5% at $68.87.

Spot gold XAU= was up 0.2% to $3,333.07 after hitting a 2-1/2 week low on Monday.