GLOBAL MARKETS-Dollar slips, bonds gain after U.S. GDP report

* Dollar slips after GDP report, before Fed meeting

* Oil falls below $82 on earlier dollar strength

* Bonds rise as GDP report hints of weakness ahead (Adds opening of U.S. markets, changes byline, dateline from LONDON)

By Herbert Lash

NEW YORK, Oct 29 (Reuters) - The dollar slipped and bond prices rose on Friday after data showed the U.S. economy grew as expected in the third quarter but not enough to alter expectations the Federal Reserve will embark on further stimulus next week.

U.S. Treasuries and bund futures rose after the government's estimate of gross domestic product was in line with analysts' forecasts of a 2.0 percent rise, but a bigger-than-expected jump in business inventories pointed to underlying weakness in the economy. For details see: [ID:nN28207235]

Still, the GDP report took a backseat to expectations Fed policymakers at their two-day meeting ending on Wednesday will announce new bond purchases of at least $100 billion a month to push borrowing costs lower and energize a sluggish recovery.

Forecasts for fourth-quarter and first-quarter GDP growth will be cut by up to half a percentage point because of the build-up in inventories, said Cary Leahey, an economist at Decision Economics in New York.

"Bond prices jumped because the huge increase in inventories will have to be worked off in the fourth quarter of 2010 and the first quarter of 2011," Leahey said.

ANEMIC U.S. GROWTH

Hugh Johnson, chief investment officer at Hugh Johnson Advisors LLC in Albany, New York said the report will play a role in the Fed's deliberations on Tuesday and Wednesday.

"The economy is recovering but recovering at an anemic pace, and this certainly will help the Fed in its deliberations on Tuesday," Johnson said.

The dollar reversed gains to trade slightly lower against major currencies in a sign of investors' nervousness about the size of monetary easing by the Fed.

The U.S. Dollar Index <.DXY> fell 0.11 percent at 77.223.

European and U.S. stocks were little changed after trading lower, while crude oil slide $82 a barrel.

MSCI's all-country world equity index <.MIWD00000PUS> rose 0.17 percent, and the FTSEurofirst 300 <.FTEU3> index of top European shares was up 0.2 percent at 1,088.18 points.

On Wall Street, the Dow Jones industrial average <.DJI> was up 0.18 point at 11,114.13. The Standard & Poor's 500 Index <.SPX> was down 0.18 point, or 0.02 percent, at 1,183.60. The Nasdaq Composite Index <.IXIC> was up 4.96 points, or 0.20 percent, at 2,512.33.

Gold swung higher to move briefly back above $1,350 an ounce as the dollar lost gains.[ID:nLDE69S0WE].

Spot gold prices rose $4.60 to $1,347.90 an ounce.

Oil prices slipped. U.S. crude for December fell 58 cents to $81.60, after edging up slightly the previous day. In London, ICE Brent fell 38 cents to $83.21 a barrel.

In bond trading, the benchmark 10-year U.S. Treasury note was up 11/32 in price to yield 2.63 percent.

Bund futures were up 45 ticks at 129.24, versus 128.95 before the release of the U.S. data. [ID:nLDE69S1CL]

The euro was down 0.08 percent at $1.392, and against the Japanese yen, the dollar hit a fresh 15-year low at 80.52 yen on trading platform EBS.

Japan's Nikkei share average <.N225> fell 1.8 percent to a one-month low on signs of sluggish consumer electronics demand while the MSCI index of Asia Pacific stocks outside Japan slipped 0.4 percent <.MIAPJ0000PUS>. (Reporting by Leah Schnurr, Nick Olivari, Ellen Freilich in New York; Lucia Mutikani in Washington; Emma Farge, Isabel Coles and Jan Harvey in London; Blaise Robinson in Paris; Writing by Herbert Lash; Editing by Kenneth Barry)