* MSCI world equity index up 0.3 pct, Europe edges down
* Dollar index down 0.5 percent, near 3-month low
* Copper prices weak after recent strength
By Jon Hopkins
LONDON, Aug 3 (Reuters) - Global stocks ticked higher on
Tuesday as U.S. stock futures indicated a steady start on Wall
Street, with oil prices firmer due to a weak dollar, while
copper prices fell back after recent strong gains.
European equities were lower, taking a breather after gains
in the previous session which took the index <> to three
month highs, hurt by losses for mining shares.
Stocks have made steady progress since late June, buoyed by
hopes the worst of Europe's debt crisis is past and signs of
improvement in the economy, but the march higher has been less
even in the last week.
The FTSEurofirst 300 index <> was down 0.1 percent,
but above earlier lows. Emerging stocks <.MSCIEF> were flat
after hitting a three-month peak in the previous session.
"Considering the massive price increase of recent days it's
not surprising to see some profit taking," said Eugen Weinberg,
analyst at Commerzbank.
Sentiment remained upbeat overall, with further gains
expected in the medium term given optimism over corporate
results and macro-economic data.
The MSCI world equity index <.MIWD00000PUS> added 0.3
percent, with the Thomson Reuters global stock index
<.TRXFLDGLPU> also up 0.3 percent.
COPPER DROP
Copper prices <CMCU3> fell as investors sold into a rally
that took prices to three-month highs, taking note also that the
trend of falling inventories is ebbing.
Oil prices <CLc1> were 0.5 percent higher, pushed back up
towards $82 a barrel with support from a weaker dollar, with
market attention on U.S. inventories data due later on Tuesday.
The dollar hit multi-month lows against major currencies,
stung by speculation that U.S. interest rates will stay low,
while technical factors also kept the currency under selling
pressure. The dollar index <DXY> fell 0.5 percent to its weakest
level since mid-April, its first break below its 200-day moving
average since January.
The two-year U.S. Treasury note yield also dropped to a
record low in Europe on the prospect of the Federal Reserve
buying more U.S. Treasuries, pushing German Bunds higher.
A Wall Street Journal report, without citing sources, said
Federal Reserve officials meeting on Aug. 10 will consider
whether to use cash the Fed receives when its mortgage-bond
holdings mature to buy new mortgage or Treasury bonds, instead
of allowing its portfolio to shrink gradually. []
U.S. stock index futures <SPc1> pointed to consolidation on
Wall Street after strong gains in the previous session, with
investors awaiting U.S. pending homes sales data and weekly
retail sales numbers.
"If this week's economic figures point towards a recovery in
consumer spending, then maybe the market is going to go higher,"
said Koen De Leus, economist at KBC Securities.
"In the short term, the market is going to be supported by
very good results. But after that, I suspect macro-economic data
is going to take over and, in my view, the numbers are going to
disappoint."
(Additional reporting by Maytaal Angel and Atul Prakash)
