GLOBAL MARKETS-Fed fears linger dent dollar, stocks; China data supports
* Trade growth eases fears over slowdown in China
* MSCI's world share index ends three-day losing streak
* Wall St turns lower, Europe's shares resume 6-week rally
* Dollar at 7-week lows on Fed tapering bets
NEW YORK, Aug 8 (Reuters) - The dollar fell to a seven-week low on Thursday, while U.S. stocks sagged as investors continued to parse recent comments for clues on when the Federal Reserve will wind down its stimulus, though signs of resilience in China's economy provided equities with some support.
China reported exports and imports rose surprisingly strongly in July, easing fears that a slowdown in the world's second largest economy would threaten the improving outlook in Europe and the fragile U.S. recovery.
In the United States, the number of Americans filing new claims for jobless benefits rose slightly last week but was still near its lowest level since before the 2007-09 recession.
Stocks on Wall Street dipped modestly, reversing initial gains after the market opened. Investors remained focused on gauging when the Fed will start to reduce its $85 billion in monthly asset purchases, which has been a major driver of the rally in equities this year.
"I'm not convinced that concerns about the Fed have been fully priced in, but we are seeing a bit of a bounce-back today, and the bulls remain firmly in control of the market for now," said Uri Landesman, president of Platinum Partners in New York.
The Dow Jones industrial average slipped 40.96 points, or 0.26 percent, to 15,429.71. The Standard & Poor's 500 Index lost 1.62 points, or 0.10 percent, to 1,689.29. The Nasdaq Composite Index was off 0.70 points, or 0.02 percent, to 3,653.30.
European shares on the FTSEurofirst 300 gained 0.2 percent and the MSCI's world equity index rose 0.2 percent.
"The news today is enough to spark some interest, and it is really making the vast majority of the global market optimistic," said Landesman.
The dollar languished at seven-week lows against other major currencies as investors had their eyes on the Fed. The dollar index had dropped 0.5 percent, while the euro rose 0.4 percent to $1.3390.
Although most analysts expect the dollar to resume gains towards the end of the year, uncertainty about when the Fed may pull back should keep the currency under pressure. Some Fed policymakers have suggested this week the central bank could scale back as soon as September, but this will depend on further improvement in the jobs market.
"We expect that as the Fed moves towards tapering, with September our base case ... the dollar will retrace some of this lost ground and most currencies will weaken into year-end," said Camilla Sutton, chief currency strategist at Scotiabank in Toronto.
Treasuries prices rose, with benchmark yields hitting their lowest in a week, as investors' appetite for bonds improved ahead of a $16 billion auction of 30-year debt.
Ten-year U.S. Treasury notes were up 6/32 in price to yield 2.589 percent. The 10-year yield hit 2.573 percent earlier, the lowest level since July 31, according to Reuters data.
Oil investors overlooked the Chinese data, sending crude prices lower on rising supplies from the North Sea. Brent crude fell $1.03 to $106.41 per barrel, while U.S. crude dropped $1.28 to $103.09.