GLOBAL MARKETS-U.S. stocks gain ground on trade optimism; oil climbs

* U.S. stocks edge higher on renewed trade talks optimism
* Oil prices jump on fresh Middle East tensions
* European stocks edge higher, Britain's FTSE up 0.4%
* Media report puts 25 bps Fed rate cut expectations back in
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(Updates to U.S. market open, changes dateline, byline)
By Stephen Culp
NEW YORK, July 22 (Reuters) - U.S. stocks advanced on Monday
at the start of a heavy earnings week, while European shares
overall were little changed, as investors took heart from
potential progress in U.S.-China trade talks and escalating
geopolitical tensions sent oil prices higher.
Tech shined as investors girded themselves for
second-quarter reports from leading industrial and tech firms
and looked ahead to the U.S. Federal Reserve's expected interest
rate cut later this month.
The South China Morning Post reported U.S. trade negotiators
will likely visit China next week for their first face-to-face
talk with Chinese officials since the G20 meeting, when Trump
held off imposing a new round of tariffs on Chinese imports.
"The markets are reacting to the China news and that's why
you're seeing a lift in semiconductors and tech," said Robert
Pavlik, chief investment strategist, senior portfolio manager at
SlateStone Wealth LLC in New York.
"It's a very quiet summer-time market, and the market's
being pushed around by a little bit of news," Pavlik added.
The Dow Jones Industrial Average .DJI fell 30.49 points,
or 0.11%, to 27,123.71, the S&P 500 .SPX gained 3.05 points,
or 0.10%, to 2,979.66 and the Nasdaq Composite .IXIC added
40.53 points, or 0.5%, to 8,187.02.
Growing tensions in the Middle East, coupled with lingering
worries of a no-deal Brexit held world stocks flat.
The pan-European STOXX 600 index .STOXX lost 0.01% and
MSCI's gauge of stocks across the globe .MIWD00000PUS shed
0.04%.
Brent crude prices LCOc1 edged higher on concerns that
Iran's seizure of a British tanker last week could result in
supply disruptions. U.S. crude CLcv1 rose 0.25% to $55.90 per barrel and Brent
LCOcv1 was last at $63.00, up 0.85% on the day.
The dollar and euro were little changed as traders looked to
policy decisions from the U.S. Federal Reserve and the European
Central Bank regarding the pace at which they will cut interest
rates, beginning with the ECB on Thursday. "The market is coming to terms with a 25 basis point rate
cut (from the Fed) at the end of the month, and that's going to
be seen as better than nothing," Pavlik added.
The dollar index .DXY rose 0.08%, with the euro EUR= up
0.02% to $1.1222.
U.S. Treasury yields fell and the yield curve flattened as
dovish Fed bank policy supported demand for government debt.
Benchmark 10-year notes US10YT=RR last rose 5/32 in price
to yield 2.0325%, from 2.05% late on Friday.
The 30-year bond US30YT=RR last rose 17/32 in price to
yield 2.5546%, from 2.578% late on Friday.
Gold steadied having slid 1% in the previous session on
lowered rate cut expectations, but remained supported by global
geopolitical uncertainties. Spot gold XAU= added 0.2% to $1,427.41 an ounce.
Shipping prices jumped on strong vessel demand, with the
Baltic Dry Index .BADI rising to a 5-year high.