GLOBAL MARKETS-Dollar, European shares slip after rally

                                
* MSCI world equity index steady at 270.59
                                
 * European stocks, dollar slip after post-jobs data rally
                                
 * Oil rises
                                
 
                                
 By Natsuko Waki
                                
 LONDON, Aug 10 (Reuters) - The dollar and European stocks
slipped on Monday after a strong performance last week following
better-than-expected U.S. jobs data, while Tokyo shares hit a
10-month closing high.
                                
 Investors are reluctant to add significant risk to their
portfolio after a broad-based rally on Friday following the U.S.
jobs report for July, which gave a clear indication that the
economy is turning around from a deep recession.
                                
 They are also waiting for the outcome of the Federal
Reserve' monetary policy meeting later in the week.
                                
 After the U.S. unemployment rate fell in July for the first
time in 15 months, bets on the central bank raising interest
rates from 0-0.25 percent by the year-end increased to as high
as a 46 percent chance from 34 percent shortly before the data.
                                
 "We had a big move on Friday, so we'll be seeing some
consolidation today," said Martin McMahon, currency strategist
at Credit Suisse in Frankfurt.
                                
 "The Fed is the big question later in the week ...  Do they
extend their buy-back programme or not? If they do, there could
be a potentially big impact on the dollar (downwards), and if
they don't, it could go the other way."
MSCI world equity index <.MIWD00000PUS> was up 0.1 percent,
after hitting its highest level since October on Friday.
                                
 The benchmark index has climbed for four weeks in a row,
rising 1.7 percent the previous week, and is up 19 percent since
the start of the year.
                                
 The FTSEurofirst 300 index <.FTEU3> fell 0.4 percent,
dragged lower by auto and basic resource shares.
                                
 In Tokyo, the Nikkei average hit its highest close in 10
months <.N225>. Japan's machinery orders, a leading indicator of
capital spending, rose in June for the first time in four
months.
                                
 Emerging stocks <.MSCIEF> rose 0.5 percent.
                                
 The dollar <.DXY> was down 0.15 percent against a basket of
major currencies. The U.S. currency fell 0.3 percent to 97.34
yen <JPY=>.
                                
 The dollar has tended to fall after upbeat economic data,
although that dynamic could be changing as the market speculates
that interest rates could rise sooner than expected.
                                
 U.S. crude oil <CLc1> rose a quarter percent to $71.09 a
barrel.
                                
 The September Bund future <FGBLc1> was steady with investors
bracing for hefty U.S. and euro zone issuance this week skewed
towards 10-year maturities.
                                
 The U.S. Treasury will auction $75 billion in new government
bonds while Germany is due to issue 6 billion euros of the
benchmark 10-year paper on Wednesday.
 (Additional reporting by Naomi Tajitsu, editing by Mike
Peacock)