GLOBAL MARKETS-Dollar falls, U.S. stocks dip as Dec rate hike seen

* Major European stock markets stage rally
* Choppy U.S. stock trading follows previous day's rally
* Dollar pull-back comes after four sessions of gains
* U.S. crude dips below $40 a barrel

(Updates with close of U.S. markets)
By Lewis Krauskopf
NEW YORK, Nov 19 (Reuters) - The U.S. dollar pulled back on
Thursday after four sessions of gains and U.S. stocks edged
lower in choppy trade as the prospect that the U.S. Federal
Reserve will hike interest rates next month gained steam.
Shares in major European markets rallied, while U.S. crude
again dipped below $40 a barrel before rebounding.
U.S. data showed fewer Americans filed for unemployment
benefits last week, further supporting the view that the Fed
will raise interest rates in December after seven years near
zero. urn:newsml:reuters.com:*:nL1N13E113
U.S. rate futures on Thursday implied traders see a 72
percent chance the Fed will raise rates at that meeting,
compared with a 68 percent chance on Wednesday, according to CME
Group's FedWatch.
"Finally, we are somewhat accepting of the fact that it
looks like the Fed will pull the trigger come December," said
Chip Cobb, senior vice president at Bryn Mawr Trust Asset
Management in Bryn Mawr, Pennsylvania. "Everyone is just waiting
for the December meeting to come and go."
The Dow Jones industrial average .DJI fell 4.41 points, or
0.02 percent, to 17,732.75, the S&P 500 .SPX lost 2.34 points,
or 0.11 percent, to 2,081.24 and the Nasdaq Composite .IXIC
dropped 1.56 points, or 0.03 percent, to 5,073.64.
"We would not be surprised if we limp through to
mid-December," said David Carter, chief investment officer at
Lenox Wealth Advisors in New York. "It's less than a month away
from the Fed decision and I'm not sure anyone wants to put big
trades on before that."
The healthcare sector .SPXHC weighed on the benchmark S&P
500 index after insurer UnitedHealth Group (N:UNH) UNH.N cut its
profit forecast. Mobile payments company Square (N:SQ) SQ.N soared 45
percent in its highly anticipated market debut. urn:newsml:reuters.com:*:nL3N13E3BY
The pan-European FTSEurofirst 300 index .FTEU3 climbed 0.4
percent and hit its highest level in three months, helped by a
jump in shares of food and facilities group Sodexo EXHO.PA ,
which said it would cut costs to cope with a volatile global
economy. urn:newsml:reuters.com:*:nL8N13E2P4
Markets in London .FTSE and Frankfurt .GDAXI were up 0.8
percent and 1.1 percent, respectively. An index of major global
markets .MIWD00000PUS rose 0.7 percent.
The U.S. dollar index .DXY , which measures the greenback
against a basket of currencies, was off 0.7 percent after
hitting a seven-month high a day earlier. The euro rose EUR=
0.7 percent against the dollar. urn:newsml:reuters.com:*:nL1N13E1IU
"A rate hike is virtually priced into the dollar, (so) that
markets appear to be looking beyond December to the road ahead
in 2016 for Fed policy," said Joe Manimbo, senior market
analyst, at Western Union Business Solutions in Washington.
Longer-dated U.S. Treasuries fared better than short-dated
issues for a second straight day. urn:newsml:reuters.com:*:nL1N13E2BR
Benchmark 10-year Treasury US10YT=RR prices rose 7/32 for
a yield of 2.2447 percent, while the price for the 30-year note
US30YT=RR rose 24/32 for a yield of 3.0040 percent.
U.S. crude oil futures CLc1 settled down 21 cents at
$40.54, after dipping below $40 for a second day, with rising
U.S. stockpiles serving as the most visible evidence of
oversupply in oil markets. Brent futures LCOc1 settled up 4
cents at $44.18 a barrel. urn:newsml:reuters.com:*:nL3N13E12N
Spot gold XAU= rose 1.1 percent, rebounding from near
six-year lows.
The 19-commodity Thomson Reuters/Core Commodity CRB Index
.TRJCRB rose 0.3 percent after hitting a roughly 13-year low a
day earlier. A weaker dollar means that commodities denominated
in the greenback become more affordable for holders of other
currencies.
"The dollar is certainly helping commodities today," said
Scott Shelton, energy broker and commodities specialist at ICAP (L:IAP)
in Durham, North Carolina.

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Global assets in 2015 http://link.reuters.com/dub25t
Currencies vs dollar http://link.reuters.com/tak27s
Commodities performance http://link.reuters.com/rac73w
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