* U.S., European, Asian stocks lower
* Dollar falls for a 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 mid-afternoon U.S. trading)
By Dion Rabouin
NEW YORK, Dec 22 Stock markets around the globe
edged lower and U.S. equities headed for their first
back-to-back daily declines of the month on Thursday as the
rally that has sent Wall Street shares to record highs since
Donald Trump's U.S. election victory paused ahead of the
Christmas holiday weekend.
U.S. indexes 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 this week.
The Dow was on track for its first two-day decline since
"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 15.16 points,
or 0.08 percent, to 19,926.8, the S&P 500 lost 3.7
points, or 0.16 percent, to 2,261.48 and the Nasdaq Composite
dropped 20.77 points, or 0.38 percent, to 5,450.66.
The U.S. dollar was little moved, recovering from
early losses after the release of data showing the U.S. economy
grew at its fastest pace in two years in the third quarter. The
push of the positive economic data and the pull of profit-taking
after the dollar's 5 percent rally since Nov. 8 left the
European markets were also broadly lower, with the
pan-European STOXX 600 index falling 0.21 percent,
closing lower for the second straight session after marking its
highest level since Jan. 4.
MSCI's broadest index of Asia-Pacific shares outside Japan
slipped 0.9 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 0.3 percent.
Emerging market bourses saw the sharpest of the day's
declines in equities with MSCI's emerging markets index
falling 1.1 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 toward
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 note yields rose to
2.558 percent. Yields have risen by around 80 basis points since
the U.S. election.
Oil prices rose 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 James Dalgleish; Editing by Susan
Thomas and Meredith Mazzilli)