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GLOBAL MARKETS-Shares fall, gasoline rises after storm's damage

* U.S. stocks flat to lower as Wall Street reopens after 2-day closure

* Euro holds within recent ranges ahead of U.S. jobs data

* Oil above $109 a barrel as U.S. East Coast refineries return

* Gasoline futures gain on refinery concerns, lumber futures soar

NEW YORK, Oct 31 (Reuters) - Wall Street began trading on Wednesday after monster storm Sandy forced a two-day closure due to weather for the first time since 1888, with shares trading lower but U.S. gasoline futures surging in the face of potentially long-term supply disruptions at the East Coast's second-largest refinery.

The storm left swaths of the East Coast crippled by flooding and power outages, suggesting lower fuel consumption. But gasoline futures for November hit their highest level in more than two weeks as traders scrambled to cover positions ahead of the contract's expiry later Wednesday.

U.S. lumber futures soared on expectations for increased demand while concerns that a Phillips 66 refinery in Linden, New Jersey, could shut for an extended period after Sandy cut power to the plant that produces 238,000 barrels a day of fuel.

The storm, which killed at least 50 people, may cause up to $15 billion in insured losses, according to one disaster-modeling company. Traders said speculators were behind much of the buying in lumber futures as they anticipated demand to rise.

Contracts for November, January and March lumber futures on the Chicago Mercantile Exchange rose by the daily trading limit of $10 per thousand board feet and remained locked at those levels, effectively shutting down trading.

Markets were expected to be volatile, with light volume as many traders remained unable to get to their offices or work from home because of power outages and no or limited public transit across the region.

``Liquidity remains very light in equities as there are a lot of empty seats on the Street,'' said Dave Lutz, a Baltimore-based trader with Stifel, Nicolaus & Co. ``We're also seeing some outsized moves.''

The Dow Jones industrial average was down 32.72 points, or 0.25 percent, at 13,074.49. The Standard & Poor's 500 Index was down 3.97 points, or 0.28 percent, at 1,407.97. The Nasdaq Composite Index was down 0.58 percent, or 17.19 points, at 2,970.76.

MSCI's all-country world equity index was little changed at 328.84, on track for its first monthly loss since May. The index has gained more than 10 percent so far this year.

Crude oil gained, with Brent crude rising above $109 a barrel. Brent for December delivery was up 24 cents at $109.32. U.S. light sweet crude oil rose $1.00 to $86.68 a barrel.

Bond prices rose. The benchmark 10-year U.S. Treasury note was up 3/32 in price to yield 1.698 percent.

The euro rose against the dollar and was headed for its third straight month of gains.

The yen, which tends to rise in times of turmoil and fall when market sentiment improves, weakened across the board.

The euro rose 0.04 percent against the dollar to $1.2961.