* U.S. stocks, dollar fade after ISM services data
* Oil prices lower after early spike
* Gold climbs on dimmed hopes for rate hike (Updates with U.S. market open, changes byline, dateline)
By Chuck Mikolajczak
NEW YORK, Sept 6 (Reuters) - A gauge of global equity markets retreated from a one-year high on Tuesday and the dollar dipped to session lows after data on the U.S. services sector fell short of expectations.
The Institute for Supply Management said its index of non-manufacturing activity fell to 51.4, its lowest level since February 2010, from 55.5 the month before and well shy of the 55 estimate. on Wall Street .SPX turned negative in the wake of the data and MSCI's index .MWD00000PUS of world shares pared gains from an intraday high of 423.28, its highest level in a year.
The dollar weakened, touching a one-week low against the yen JPY= while the dollar index .DXY hit a two-week low of 95.03. Dow Jones industrial average .DJI fell 19.76 points, or 0.11 percent, to 18,472.2, the S&P 500 .SPX lost 2.12 points, or 0.1 percent, to 2,177.86 and the Nasdaq Composite .IXIC added 3.81 points, or 0.07 percent, to 5,253.71.
Stocks in Europe also pulled back after the data, with the FTSEurofirst 300 .FTEU3 last down 0.3 percent although MSCI's index of world shares was 0.4 percent higher.
The services sector report also tamped down expectations for a rate hike by the U.S. Federal Reserve in September, with the odds of a rate hike this month now at 15 percent versus 21 percent on Friday, according to CME's FedWatch tool.
Comments from several Fed officials in recent weeks had increased the probability for a rate hike this year, but expectations have declined since Friday's weaker-than-anticipated U.S. payrolls report.
Financials .SPSY , off 0.9 percent, which stand to benefit from an increase in rates, were the worst performer of the 10 major U.S. sectors.
Benchmark 10-year U.S. Treasury yields US10YT=RR sunk to a session low of 1.549, last yielding 1.5562 percent, up 12/32 in price. quickly jumped on the ISM report. We're seeing all buyers as the odds for a September hike have diminished," said Justin Lederer, Treasury trader at Cantor Fitzgerald in New York.
The disappointing data helped lift spot gold XAU= more than 1 percent to $1,340.31 an ounce, after touching a high $1,342.14 an ounce, its highest level since Aug. 23. despite the weaker dollar and low expectations for a rate hike this month, oil prices were lower, with Brent LCOc1 off 1.9 percent at $46.71 and U.S. crude CLc1 down 0.4 percent ti $44.26 as hopes for quick action by producers to tackle a global supply glut faded. prices had jumped earlier after Saudi Arabia and Russia agreed on Monday to cooperate in world oil markets, saying they will not act immediately but could limit output in the future. Global assets in 2016
http://link.reuters.com/dub25t Commodities performance
http://link.reuters.com/rac73w Currencies vs dollar
http://link.reuters.com/tak27s
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