* Dollar index slips, euro regains $1.04
* Wall Street opens lower, following European stocks
* Gains in Asia support global equity gauge
* Oil falls on surprise build in U.S. inventories
(Updates to U.S. market open, adds data, quote, changes
dateline, previous LONDON)
By Dion Rabouin
NEW YORK, Dec 21 Stocks edged down and the
dollar eased from 14-year highs on Wednesday, giving back some
of the gains chalked up since Donald Trump's U.S. election
victory as investors took profits on the rally in risk assets
over the past six weeks.
Wall Street opened modestly lower, in line with European
indexes, with the Dow Jones Industrial Average remaining just
below the 20,000 mark.
U.S. stocks have been roaring ahead since the election, with
the Dow up 9 percent and the S&P 500 gaining 6 percent since
Nov. 8 on hopes President-elect Trump's proposed deregulation
and fiscal stimulus will boost economic growth.
"We're looking at a relatively quiet morning as investors
wind down ahead of the holiday weekend," said Andre Bakhos,
managing director at Janlyn Capital in Bernardsville, New
"The market has been rallying since the election and these
minor pauses are welcome and necessary as traders take some
The Dow Jones Industrial Average fell 12.11 points,
or 0.06 percent, to 19,962.51, the S&P 500 lost 2.66
points, or 0.12 percent, to 2,268.1 and the Nasdaq Composite
dropped 8.22 points, or 0.15 percent, to 5,475.72.
The dollar index, which tracks the greenback against
six currencies, fell 0.45 percent, retreating after hitting its
highest level since December 2002 on Tuesday.
U.S. 10-year Treasury yields, which reached their highest in
more than two years last week after the Federal Reserve raised
interest rates and forecast more hikes in 2017 than most
investors had expected, fell to 2.55 percent.
Benchmark 10-year yields have risen almost 80 basis points
since early November.
"We've been trading in a fairly tight range the last couple
of days with low volumes. It's very holiday-like trading," said
Dan Mulholland, head of Treasuries trading at Credit Agricole in
"I think people are trying to assess how the next year is
going to start."
The euro, which touched a 14-year low on Tuesday, rose 0.6
percent to $1.0448 while the yen gained 0.4
percent to 117.35 per dollar.
The Swedish crown rose 1.4 percent, its biggest
one-day gain in six months, to a two-month high of 9.6350 after
the Riksbank only narrowly voted to add to its bond-buying
The pan-European STOXX 600 index fell 0.4 percent,
having hit an 11-month high on Tuesday, led lower by banking
Italy's Monte dei Paschi di Siena, which must raise 5
billion euros by the end of the month to avoid state
intervention, was once again in focus. Its shares
dropped as much as 17 percent.
China stocks rebounded as fears of a liquidity squeeze in
the banking system subsided after risks from a bond scandal
appeared contained, and on a pledge to deepen reforms in
The blue-chip CSI300 index rose 0.91 percent, to
3,339.54 points, while the Shanghai Composite Index
gained 1.15 percent to 3,138.54 points, both snapping a
two-session losing streak
MSCI's broadest index of Asia-Pacific shares outside Japan
inched up 0.1 percent after a string of losses.
Tokyo's Nikkei share average fell, pulling back from
earlier one-year highs to close down 0.3 percent.
The gains in some Asian bourses counterbalanced losses in
the U.S. and Europe to leave MSCI's measure of global equity
markets flat on the day.
Oil prices fell after the U.S. Energy Information
Administration reported an unexpected crude inventory build.
Brent crude fell 0.3 percent to $55.18 a barrel.
Gold edged up 0.2 percent to $1,134 an ounce as the
(Reporting by Dion Rabouin; Additional reporting by Karen
Brettell in New York and Tanya Agrawal in Bengaluru; Editing by