* U.S., European, Asian stocks lower
* Dollar down for second day after strong gains
* Strong U.S. GDP growth fails to spur dollar strength
* Emerging market stocks take brunt of equity selloff
(Updates to U.S. market open, changes dateline, previous
By Dion Rabouin
NEW YORK, Dec 22 The dollar slumped and U.S.
equities headed for their first back-to-back daily declines of
the month as the rally that sent Wall Street stocks to record
highs since Donald Trump's U.S. election victory paused ahead of
the Christmas holiday weekend.
Stocks have surged since the Nov. 8 election, but were lower
in light trading as traders took profits. The Dow, Nasdaq and
S&P 500 have all risen more than 5 percent in the six weeks
since Trump's victory, with the Nasdaq and Dow both touching
record highs earlier this week.
"With less traders on their desks and most investors
planning where to spend their New Year's Eve, markets have
clearly entered the holiday mood," said Hussein Sayed, chief
market strategist at FXTM.
"We can barely see any significant moves in equities, fixed
income or even currency markets today, suggesting that more
consolidation is expected throughout the remaining days of
The Dow Jones Industrial Average fell 21.68 points,
or 0.11 percent, to 19,920.28, the S&P 500 lost 3.97
points, or 0.18 percent, to 2,261.21 and the Nasdaq Composite
dropped 14.27 points, or 0.26 percent, to 5,457.16.
The U.S. dollar, which has also surged since Election
Day on bets that President-elect Trump's policies will spur
economic growth and inflation, fell 0.3 percent against a basket
of currencies, pulling further away from the 14-year high it set
earlier this week.
Traders brushed off data showing the U.S. economy grew at
its fastest pace in two years in the third quarter and booked
profits on bullish dollar bets.
European markets were also broadly lower, with the
pan-European STOXX 600 index down 0.4 percent, falling
for the second straight session after marking its highest level
since Jan. 4.
MSCI's broadest index of Asia-Pacific shares outside Japan
slipped 0.7 percent with the Nikkei
finishing 0.1 percent lower, having hit one-year highs this
Hong Kong's Hang Seng index was down 0.8 percent
after touching its lowest level since July, though Australian
shares finished up 0.5 percent, extending gains into a
fourth straight session.
A metric of stocks markets around the globe
fell 0.2 percent.
Emerging market bourses saw the sharpest of the day's
declines in equities with MSCI's emerging markets index
falling more than 1 percent to a one-month low. It has
closed lower in six of the last seven sessions.
The U.S. election outcome has slammed emerging market
currencies and equities as Trump's campaign pledges to rewrite
trade deals and a steep rise in U.S. interest rates and the
value of the dollar, which increases the cost of repaying loans
many countries have in U.S. currency, have sent investors
fleeing for the exits.
U.S. Treasury yields edged up slightly after the GDP data,
and as investors prepared for new Treasury supply next week.
Benchmark 10-year Treasury yields rose to 2.577
percent. Yields have risen by around 80 points since the U.S.
Oil prices rose by around 1 percent, spurred by the pause in
the dollar rally and optimism that crude producers would abide
by an agreement to limit output to prop up prices.
Copper prices fell to one-month lows as a sharp drop
in imports by top consumer China fuelled worries about demand.
(Additional reporting by John Geddie in London and Lisa
Twaronite in Tokyo; Editing by Susan Thomas and Meredith