GLOBAL MARKETS-Dollar strengthens after data, Yellen eyed

* European stocks near 3-month high, euro near 7-1/2 month
low
* Eurozone inflation bolsters ECB easing bets
* Brent slips for fifth day ahead of Friday OPEC meeting
* Fed's Lockhart says "compelling" case to raise U.S. rates

(Adds U.S. market open; changes dateline; previous LONDON)
By Chuck Mikolajczak
NEW YORK, Dec 2 (Reuters) - The dollar hit an 8-1/2 month
high on Wednesday as economic data supported a rate hike by the
U.S. Federal Reserve in December, while U.S. stocks were little
changed as investors awaited comments from Fed Chair Janet
Yellen.
European stocks hovered at a 3-1/2 month high and the euro
EUR= was just above a 7-1/2-month low as euro zone inflation
remained barely visible and kept expectations intact the
European Central Bank will engage in more stimulus after its
meeting on Thursday.
U.S. private employers boosted hiring in November. The ADP
National Employment Report showed private payrolls increased
217,000 last month while a separate report showed nonfarm
productivity grew at a faster pace than previously thought in
the third quarter.
"We had some economic data which supports a rate hike in
December," said Peter Cardillo, chief market economist at First
Standard Financial in New York.
"The market wants to be reassured of the fact the Fed is not
going to be aggressive. We are just buying time until we hear
the words of wisdom out of Mrs. Yellen."
The euro dropped back below $1.06 as the first reading of
November euro zone inflation stayed at 0.1 percent, far below
the ECB's near 2-percent target and adding to worries that it
could stifle any serious economic growth.
The Dow Jones industrial average .DJI fell 23.38 points,
or 0.13 percent, to 17,864.97, the S&P 500 .SPX lost 4.44
points, or 0.21 percent, to 2,098.19 and the Nasdaq Composite
.IXIC added 12.02 points, or 0.23 percent, to 5,168.32.
MSCI's all-country world index .MIWD00000PUS of equity
performance in 46 countries shed 0.29 percent. The pan-European
FTSEurofirst .FTEU3 was up 0.1 percent.
Markets are expecting another round of easing from the ECB
on Thursday, including an expansion of its bond-buying program
and even higher charges for commercial banks that hoard cash.
With the euro back on the slide, the U.S. dollar index
.DXY pushed back above the 100 threshold, just below the
12-year high of 100.39 it had hit in March.
Federal Reserve head Janet Yellen speaks in Washington
later, with the Fed widely expected to pull the trigger on Dec.
16, its first hike in U.S. interest rates in almost a decade.

Four other Fed members were also due to speak on Wednesday,
with Atlanta Fed President Dennis Lockhart saying there was a
"compelling" case to raise U.S. rates.
Recent economic data pointed to weakness in the
manufacturing sector but other data continued to suggest the
U.S. economy remains on solid footing.
Benchmark 10-year Treasuries notes US10YT=RR were off 6/32
in price to yield 2.178 percent.

OIL PRESSURE
The strengthening dollar put pressure on commodities, with
oil also pushed lower by an unexpected rise in U.S. inventories.

Brent oil LCOc1 prices dropped for a fifth straight
session and were last down 1.9 percent at $43.61 a barrel, while
U.S. crude CLc1 was down 2.3 percent at $40.91.
Copper CMCU3 lost 0.5 percent to $4,607.00 a tonne after
falling as low as $4,565.00, and spot gold XAU= was off 1.3
percent at $1,055.61 an ounce. ID:nL8N13R1K6

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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
The dollar before and after rate hikes http://reut.rs/1PuuPZI
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