(Adds close of U.S. markets)
* Dollar touches five-week high on U.S. rate outlook
* Shares slide worldwide; 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 byChina's Tencent and Celgene Corp .
Also pushing the greenback 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 monetary stimulus in the region. dollar in February posted its strongest monthlyperformance since November 2016 as it also rose to a two-monthhigh against the Canadian dollar CAD= and a six-week highagainst sterling GBP= .
"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 gained 0.34 percent, with the euro EUR= down 0.27 percent to $1.2198. The Japanese yen JPY= firmed 0.55 percent versus the greenback at 106.73 per dollar.
Stocks globally snapped a record 15-month winning streak,pulled lower by Chinese conglomerate Tencent Holdings 0700.HK because of its large stake in Singapore-based Sea Ltd SE.N , anonline gaming and e-commerce firm, and Celgene CELG.O .
Sea posted a larger-than-expected fourth-quarter loss andthe departure of its president, who was the public face of itsU.S. listing last year. Sea ADR's fell 10.6 percent in New York. said late 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. fell 3.1 percent, the biggest drag on MSCI'sall-country world index .MIWD00000PUS , which fell 1.1 percentas Celgene closed down 9 percent.
The 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 fell380.83 points, or 1.5 percent, to 25,029.2. The S&P 500 .SPX lost 30.45 points, or 1.11 percent, to 2,713.83 and the NasdaqComposite .IXIC dropped 57.35 points, or 0.78 percent, to7,273.01. U.S. Treasury debt yields slipped onexpectations that a faster pace of Federal Reserve interest rateincreases would cool U.S. inflation and economic 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 11/32in price to push their yield down to 2.8679 percent.
Euro zone bond yields held near recent lows as inflation inthe bloc slowed, potentially complicating the European CentralBank's plan to remove stimulus and move towards raising rates. oil prices fell 2.3 percent and gasoline futurestumbled after the U.S. government said crude inventories rosemore 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 CLc1 fell $1.37 to settle at $61.64 per barreland Brent LCOc1 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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