(Adds New York trading, changes byline and dateline; previous LONDON)
* Shanghai market records biggest daily loss since 2007
* Dollar falls more than 1 percent against euro
* Fed meets on Tuesday and Wednesday
By Michael Connor
NEW YORK, July 27 (Reuters) - The biggest rout in Chinese shares in eight years stoked concerns on Monday over the worldwide impact of slowing growth in the world's No. 2 economy, knocking down global equities and the prices of key commodities.
The dollar was weak ahead of the week's main set piece - Wednesday's Federal Reserve policy decision and statement - with a better-than-expected survey of German business sentiment prodding the euro above $1.11 for the first time in two weeks.
Wall Street opened lower on worries over China's slowing growth, crystallized by a stunning 8.5 percent fall in Shanghai that also rattled equity markets in Europe and Asia.
By mid-morning the Dow Jones industrial average .DJI was off 111.04 points, or 0.63 percent, to 17,457.49, the S&P 500 .SPX was down 8.94 points, or 0.43 percent, to 2,070.71, and the Nasdaq Composite .IXIC had lost 31.43 points, or 0.62 percent, to 5,057.21. ID:nL3N1074UA
Share indices in Frankfurt and Paris tumbled more than 2 percent .GDAXI .FCHI , while London's FTSE 100 was off nearly 1 percent .FTSE . Japan's Nikkei .N225 slipped nearly 1 percent, while MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS fell 1.7 percent.
Traders and investors said the declines largely came on concerns over sluggish global economic growth triggered by the Chinese equity slump and weak recent data, which overshadowed some forecast-beating corporate results.
Both copper, for which Chinese demand is an important driver, and the broader Thomson Reuters CRB commodities index .TRJCRB hit their lowest point in six years. Copper futures CMCU3 fell another 1 percent on Monday.
Oil was near four-month lows after the Chinese stock market crash fueled worries over the economic health of the world's biggest energy consumer and as more evidence emerged of a global supply glut.
Brent crude LCOc1 fell $1.07 cents to $53.56 a barrel, touching its lowest in almost four months, adding to falls which are expected to put more downward pressure on global inflation.
"The drop in Chinese equities and the negative growth backdrop in China are clearly going to leave you very concerned about Chinese demand," said Nic Brown, head of commodities research at Natixis.
Despite the still patchy economic news, many analysts still expect U.S. central bank policymakers meeting this week to raise interest rates in September. Federal Reserve chief Janet Yellen drove the dollar higher earlier this month by saying a rate hike this year was on the cards, but she has gone no further than that.
Expectations of a hike have slowly pushed up U.S. Treasury yields and widened the dollar's premium over the euro. But the euro has also tended to rise when investors get more concerned about global growth and rein in riskier bets, as they were doing on Monday.
The common currency gave back some of its early gains from a bullish Ifo survey of German business sentiment ECONDE to stand up 1 percent on the day at $1.1094 EUR= . A dollar index was down 0.80 percent.
U.S. Treasury prices were up, getting a lift from international investors seeking shelter from tumbling stock prices. The bellwether 10-year note US10YT= was last up 14/32 and yielding 2.2247 percent.