(Adds oil, gold settlement prices, European market close)
* Dollar touches five-week high on U.S. rate outlook
* Global shares slide, Tencent, Celgene lead decline
* Oil falls on surprise U.S. gasoline stock build
By Herbert Lash
NEW YORK, Feb 28 (Reuters) - The dollar rose to five-weekhighs on Wednesday on the prospect of tighter monetary policyand an upbeat U.S. economic outlook from the Federal Reserve'snew chief, while global equity markets slid on declines inCelgene Corp and China's Tencent.
Also pushing the dollar higher was euro zone inflationslowing to a 14-month low, which knocked the euro to six-weeklows and underscored the European Central Bank's caution inremoving stimulus in the region. greenback in February was poised to post its bestmonthly performance since November 2016 as it also rose to atwo-month high against the Canadian dollar and notchedthree-week highs against both the Swiss franc and sterling.
"The dollar has found tailwinds in America's sturdy economyand its hawkish central bank," said Joe Manimbo, senior marketanalyst, at Western Union Business Solutions in Washington.
The dollar index .DXY rose 0.26 percent, with the euro EUR= down 0.21 percent to $1.2205. The Japanese yen JPY= firmed 0.58 percent versus the greenback at 106.71 per dollar.
World stocks were set to snap a record 15-month winningstreak, pulled lower by Chinese conglomerate Tencent Holdings 0700.HK because of its large stake in Singapore-based Sea Ltd SE.N , an online gaming and e-commerce firm, and Celgene.
Sea posted a larger-than-expected fourth-quarter loss andthe departure of its president - the public face of its U.S.listing last year. Sea fell 12.9 percent. CELG.O said on Tuesday that U.S. health regulatorsrejected its application seeking approval of a key multiplesclerosis drug due to insufficient data. The surprisedevelopment will likely delay the entry to market of one ofCelgene's most important pipeline assets. pan-European FTSEurofirst 300 index .FTEU3 of leadingregional shares fell 0.72 percent to close at 1,487.20. Wall Street, the Dow Jones Industrial Average .DJI fell147.92 points, or 0.58 percent, to 25,262.11, the S&P 500 .SPX lost 7.02 points, or 0.26 percent, to 2,737.26 and the NasdaqComposite .IXIC added 0.35 points, or 0 percent, to 7,330.71. yields slipped on expectations that a fasterpace of Fed rate increases would cool U.S. inflation andeconomic growth. economic growth slowed slightly more than initiallythought in the fourth quarter as the strongest pace of consumerspending in three years drew in imports and depletedinventories. 10-year U.S. Treasury notes US10YT=RR rose 10/32in price to push their yield down to 2.8697 percent.
Euro zone bond yields held near recent lows as inflation inthe bloc slowed, potentially complicating the European CentralBank's plan to remove monetary stimulus and move towards raisingrates. oil prices fell more than 2 percent and gasolinefutures tumbled after the U.S. government said crude inventoriesrose more than expected while gasoline stocks posted a big buildinstead of the draw that was forecast. crude inventories rose by 3 million barrels for theweek ending Feb. 23, compared with analyst expectations for abuild of 2.1 million barrels. EIA/S
U.S. crude CLcv1 fell $1.37 to settle at $61.64 per barreland Brent LCOcv1 settled down $1.28 at $65.78.
U.S. gold futures GCcv1 settled down 70 cents or 0.1percent, at $1,317.90 per ounce. chairs Congressional debuts & market reactions
http://reut.rs/2BSSiT4GRAPHIC-U.S. 10-year Treasury vs. Dollar index
http://reut.rs/2EWZtMxGRAPHIC-U.S., German bonds part ways in Feb
http://reut.rs/2CqbAA1GRAPHIC-Global assets in 2018
http://tmsnrt.rs/2jvdmXlGRAPHIC-Emerging markets in 2018
http://tmsnrt.rs/2ihRugVGRAPHIC-World FX rates in 2018
http://tmsnrt.rs/2egbfVh
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