* World stock indexes nearly flat after recent gains
* U.S. durable goods orders surge, business spending weak
* Oil turns lower after hitting $50 a barrel
(Updates with U.S. market openings, changes dateline, previous
LONDON)
By Caroline Valetkevitch
NEW YORK, May 26 (Reuters) - The U.S. dollar fell on
Thursday after U.S. durable goods orders data showed weakness in
business spending plans, while world stock indexes were little
changed after two days of strong gains.
Oil prices were lower after earlier topping $50 a barrel for
the first time in roughly seven months.
Orders for long-lasting U.S. manufactured goods surged in
April on strong demand for transportation equipment and a range
of other products, but continued weakness in business spending
plans suggested the manufacturing rout was far from over.
"The market is not really seeing any signs here of an
improvement in business spending," said Thierry Albert Wizman,
global interest rates and currencies strategist at Macquarie Ltd
in New York.
The U.S. dollar index, which measures the greenback against
a basket of six major currencies, hit 94.938, its lowest level
in eight days .DXY .
Investors are looking ahead to a speech by Federal Reserve
Chair Janet Yellen on Friday for more clues on the U.S. interest
rate outlook.
Investor expectations for higher rates have grown since last
week's minutes from the central bank's April meeting signaled a
June increase was on the table. Comments from policymakers and
upbeat U.S. economic data in recent days have supported those
views.
"The market will be looking for some direction from Yellen.
If she's more hawkish, you could see the market changing
direction," said Peter Cardillo, chief market economist at First
Standard Financial in New York.
On Wall Street, the Dow Jones industrial average .DJI was
down 41.16 points, or 0.23 percent, at 17,810.35, the S&P 500
.SPX lost 2.84 points, or 0.14 percent, to 2,087.7 and the
Nasdaq Composite .IXIC dropped 1.13 points, or 0.02 percent,
to 4,893.77.
MSCI's all-country world stock index .MIWD00000PUS rose
0.2 percent, while the pan-European FTSEurofirst 300 index
.FTEU3 of leading regional stocks was flat.
Brent LCOc1 rose as high as $50.35 a barrel, its highest
since early November, but was last down 20 cents at $49.54. U.S.
crude futures CLc1 were last down 16 cents at $49.40, after
touching $50.21, a peak since mid-October.
U.S. Treasury prices rose, with short- and medium-dated
yields retreating from 10-week highs, ahead of a $28 billion
sale of seven-year notes, the final leg of this week's $88
billion in longer-dated government debt supply.
The two-year yield US2YT=RR was down nearly 3 basis points
at 0.891 percent, while the five-year yield US5YT=RR slipped
over 2 basis points to 1.380 percent.
In the precious metals market, gold prices gained as the
dollar fell. Spot gold XAU= rose 0.1 percent to $1,224.96 an
ounce.