Updates prices at 2:56 p.m. ET/1856 GMT

By Sinéad Carew and Chris Prentice

NEW YORK, July 30 (Reuters) -MSCI's global stocks gauge was lower on Tuesday as investors were jittery ahead of major corporate earnings reports and central bank meetings, while concern about the global economy pushed oil prices lower.

U.S. Treasury yields drifted lower in choppy trading as investors geared up for the outcome of the U.S. Federal Reserve meeting, which ends on Wednesday. The Fed is expected to hold interest rates steady for now but flag a rate cut in September.

Investors are also waiting for earnings reports from market heavyweights Microsoft MSFT.O and chipmaker AMD AMD.O due after the bell and reports scheduled for later in the week from Apple AAPL.O and Amazon.com AMZN.O.

"Markets are on watch for earnings and what the Fed will say on Wednesday," said John Praveen, managing director at Paleo Leon.

Praveen said some investors also worried about escalation in the Middle East after an Israeli air strike targeted a senior Hezbollah commander in Beirut's southern suburbs late on Tuesday in what Israeli military said was retaliation for a cross-border attack that killed 12 children and teenagers.

On Wall Street at 02:56 p.m. ET/1856 GMT, the Dow Jones Industrial Average .DJI rose 119.78 points, or 0.30%, to 40,659.71, the S&P 500 .SPX lost 32.64 points, or 0.60%, to 5,430.90 and the Nasdaq Composite .IXIC lost 214.41 points, or 1.23%, to 17,155.79.

MSCI's gauge of stocks across the globe .MIWD00000PUS fell 2.99 points, or 0.37%, to 801.36. Earlier, Europe's STOXX 600 .STOXX index closed up 0.45%.

In currencies, the Japanese yen gained on news reports that the Bank of Japan is considering raising rates to 0.25% when it concludes its two-day meeting on Wednesday.

The dollar index =USD, which measures the greenback against a basket of currencies including the yen and the euro, fell 0.02% to 104.56.

The euro EUR= was down 0.08% at $1.081. Against the Japanese yen JPY=, the dollar weakened 0.47% to

153.28. Sterling GBP= weakened 0.24% to $1.2831.

Traders have been pricing in a roughly even chance for a Bank of England rate cut at its policy meeting on Thursday.

In energy markets, oil prices fell on worries about weaker demand from China and a stronger U.S. dollar as well as concerns OPEC+ could boost supplies in the future.

U.S. crude CLc1 settled down 1.4% at $74.73 a barrel and Brent LCOc1 ended its session at $78.63 per barrel, down 1.4% on the day.

In precious metals, gold prices gained on investor optimism the Fed will drop clues on Wednesday about lowering interest rates in September.

Spot gold XAU= added 0.86% to $2,404.01 an ounce. U.S. gold futures GCc1 gained 1.06% to $2,402.90 an ounce.

Reporting by Sinéad Carew and Chris Prentice, additional reporting by Tom Westbrook and Amanda Cooper, Editing by Sherry Jacob-Phillips, Sharon Singleton, Ros Russell, Will Dunham and Marguerita Choy

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