(Adds closing New York prices, quotes)
* Wall St's Nasdaq off nearly 1 percent
* Dollar falls 1 percent against euro
* Brent crude settles down 2 percent
* Shanghai market records biggest daily loss since 2007
* Fed meets on Tuesday and Wednesday
By Michael Connor
NEW YORK, July 27 (Reuters) - The biggest rout in Chinese
shares in eight years stoked concerns over slowing growth in the
world's No. 2 economy on Monday, knocking down global equities
and the prices of key commodities.
The dollar eased on safety bidding for other major
currencies and the euro topped $1.11 for the first time in two
weeks, supported by strong German business sentiment data.
Wall Street ended down on the worries over China's slowing
growth, crystallized by a stunning 8.5 percent fall in Shanghai
shares that also rattled equity markets in Europe and Asia.
ID:nL3N1074UA
China's top securities regulator quickly said the government
would continue to buy shares to stabilize the stock market as an
unprecedented rescue plan already in place appeared to be
sputtering. ID:nL3N107579
"Dollar weakness against the euro and the yen is a
risk-aversion story reflecting China stocks," said currency
strategist Richard Franulovich at Westpac in New York.
Wall Street's Dow Jones industrial average .DJI finished
down 127.94 points, or 0.73 percent, to 17,440.59, the S&P 500
.SPX ended down 12.01 points, or 0.58 percent, to 2,067.64 and
the Nasdaq Composite .IXIC lost 48.85 points, or 0.96 percent,
to 5,039.78.
Nine of the 10 major S&P 500 sectors were lower.
Shares of Teva Pharmaceutical (ARCA:TEVA) TEVA.N jumped 16.41 percent
to a record high of $72.00 after it agreed to buy Allergan's
AGN.N generic drugs business for $40.5 billion, giving up on
its bid to buy Mylan MYL.O . Allergan (NYSE:AGN_pa) rose 6.09 percent while
Mylan fell 14.51 percent. ID:nL5N107178
Share indices in Frankfurt and Paris tumbled more than 2.5
percent .GDAXI .FCHI , while London's FTSE 100 ended down
1.13 percent .FTSE . MSCI's broadest index of Asia-Pacific
shares outside Japan .MIAPJ0000PUS fell 1.7 percent.
Both copper, for which Chinese demand is an important
driver, and the broader Thomson Reuters CRB commodities index
.TRJCRB hit their lowest levels in six years. Copper futures
CMCU3 fell another 1.4 percent on Monday.
Oil hit four-month lows after the Chinese stock crash fueled
worries the world's biggest energy consumer may cut back and as
more evidence emerged of a global crude supply glut.
Brent crude oil LCOc1 settled down $1.15, or 2 percent, at
$53.47 a barrel. In post-settlement, it fell to as low as
$52.90, its lowest since mid-March.
Despite the still-patchy economic news, many analysts expect
U.S. Federal Reserve policymakers meeting this week to raise
interest rates in September.
Expectations of a rate hike have slowly pushed up U.S.
Treasury yields and widened the dollar's premium over the euro.
But the euro has also tended to rise when investors get more
concerned about global growth and rein in riskier bets, as they
did on Monday.
The euro pared some of its early gains from a bullish Ifo
survey of German business sentiment ECONDE to stand up 1
percent on the day at $1.1094 EUR= . A dollar index .DXY was
down 0.70 percent, while the greenback was down 0.4 percent
versus the yen. ID:nL5N1072PS
U.S. Treasury prices got a lift from international investors
seeking shelter from tumbling stocks. The 10-year note US10YT=
was last up 11/32 and yielding 2.2337 percent.