(Updates prices to U.S. afternoon trading with oil settlement)

* Oil futures settle higher on concerns about tight

supply

* US reviews Iran proposal, Pakistan works to bridge

U.S.-Iran gap

* Stock indexes rise while dollar falls

* Earnings, economic data and central bank decisions in

focus this week

By Sinéad Carew and Sophie Kiderlin

NEW YORK/LONDON, April 27 (Reuters) - MSCI's global

equities index advanced modestly on Monday after the White House

said President Donald Trump was reviewing a proposal from

Iran while investors looked cautiously ahead to a busy week of

megacap earnings reports, economic data and central bank

decisions.

After a choppy morning, equities perked up a little on the news

the United States was reviewing Iran's latest proposal,

disclosed earlier by Iranian sources. The proposal involved

setting aside discussion of Iran's nuclear program until the war

is ended and disputes over shipping from the Gulf are resolved.

Sources from mediator Pakistan said on Monday that work has not

halted to bridge gaps between the United States and Iran.

"The market has come to the conclusion that there will be a

resolution sooner or later," said John Praveen, co-chief

investment officer at Paleo Leon in Princeton, New Jersey.

Still, oil futures settled higher on Monday on concerns about

tight energy supplies as the war, triggered by U.S.-Israeli

strikes on Iran two months ago, has limited energy shipping

through the Strait of Hormuz.

U.S. crude settled up 2.09%, or $1.97 at $96.37 a

barrel, while Brent settled at $108.23 per barrel, up

2.75%, or $2.90, on the day.

On Wall Street the Dow Jones Industrial

Average fell 62.92 points, or 0.13%, to 49,167.79, the

S&P 500 rose 8.83 points, or 0.12%, to 7,173.91 and the

Nasdaq Composite rose 50.50 points, or 0.20%, to

24,887.10.

MSCI's gauge of stocks across the globe

rose 2.32 points, or 0.22%, to 1,074.52. Earlier, the

pan-European STOXX 600 index closed down 0.3%.

While worrying about the Iran war, investors also waited

with bated breath for economic data and earnings reports,

according to Phil Blancato, chief market strategist at Osaic

Wealth in New York. This week's data will include first-quarter

U.S. economic growth and the March Personal Consumption

Expenditures Price Index, which is the Federal Reserve's

preferred gauge for inflation.

"We're in this holding-on moment here. I don't think the

market's going to grind a lot higher," said Blancato. "The

market is trying to hold on to its gains, waiting for more

information to support where we've gone so far this year."

Capital expenditure plans will be a key focus for firms such

as Microsoft ( MSFT ), Alphabet, Amazon ( AMZN ) and

Meta Platforms ( META ) when they report quarterly results on

Wednesday, while Apple ( AAPL ) is scheduled to release results

a day later.

CENTRAL BANK MEETINGS

In currencies, the U.S. dollar slipped on Monday as investors

were on edge about the Middle East and a slate of central bank

meetings later this week.

The dollar index, which measures the greenback

against a basket of currencies including the yen and the euro,

fell 0.16% to 98.49, with the euro up 0.01% at $1.1721.

Against the Japanese yen, the dollar strengthened

0.01% to 159.39.

Major central banks are expected to keep policy on hold this

week, including the U.S. Federal Reserve. The Fed's meeting,

which runs Tuesday through Wednesday, will likely be the last

with Jerome Powell as chair.

The first central bank to meet will be the Bank of Japan, which

is expected on Tuesday to keep its short-term policy rate steady

at 0.75%, while the European Central Bank and Bank of England

are expected to keep policy unchanged.

In U.S. Treasuries, the yield on benchmark U.S. 10-year notes

rose 2.5 basis points to 4.336%, from 4.31% late on

Friday, while the 30-year bond yield rose 2.5 basis

points to 4.9409%.

The 2-year note yield, which typically moves in

step with interest rate expectations for the Federal Reserve,

rose 2.3 basis points to 3.799%, from 3.776% late on Friday.

In precious metals, spot gold fell 0.62% to $4,679.09 an

ounce.