* U.S., European, Asian stocks lower
* Dollar down for second day after strong gains
* Strong U.S. GDP growth fails to spur dollar strength
* Emerging market stocks take brunt of equity selloff (Updates to U.S. market open, changes dateline, previous LONDON)
By Dion Rabouin
NEW YORK, Dec 22 (Reuters) - The dollar slumped and U.S. equities headed for their first back-to-back daily declines of the month as the rally that sent Wall Street stocks to record highs since Donald Trump's U.S. election victory paused ahead of the Christmas holiday weekend.
Stocks have surged since the Nov. 8 election, but were lower in light trading as traders took profits. The Dow, Nasdaq and S&P 500 have all risen more than 5 percent in the six weeks since Trump's victory, with the Nasdaq and Dow both touching record highs earlier this week.
"With less traders on their desks and most investors planning where to spend their New Year's Eve, markets have clearly entered the holiday mood," said Hussein Sayed, chief market strategist at FXTM.
"We can barely see any significant moves in equities, fixed income or even currency markets today, suggesting that more consolidation is expected throughout the remaining days of 2016."
The Dow Jones Industrial Average .DJI fell 21.68 points, or 0.11 percent, to 19,920.28, the S&P 500 .SPX lost 3.97 points, or 0.18 percent, to 2,261.21 and the Nasdaq Composite .IXIC dropped 14.27 points, or 0.26 percent, to 5,457.16.
The U.S. dollar .DXY , which has also surged since Election Day on bets that President-elect Trump's policies will spur economic growth and inflation, fell 0.3 percent against a basket of currencies, pulling further away from the 14-year high it set earlier this week. FRX/
Traders brushed off data showing the U.S. economy grew at its fastest pace in two years in the third quarter and booked profits on bullish dollar bets. markets were also broadly lower, with the pan-European STOXX 600 .STOXX index down 0.4 percent, falling for the second straight session after marking its highest level since Jan. 4.
MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS slipped 0.7 percent with the Nikkei .N225 finishing 0.1 percent lower, having hit one-year highs this week.
Hong Kong's Hang Seng index .HSI was down 0.8 percent after touching its lowest level since July, though Australian shares .AXJO finished up 0.5 percent, extending gains into a fourth straight session.
A metric of stocks markets around the globe .MIWD00000PUS fell 0.2 percent.
Emerging market bourses saw the sharpest of the day's declines in equities with MSCI's emerging markets index .MSCIEF falling more than 1 percent to a one-month low. It has closed lower in six of the last seven sessions.
The U.S. election outcome has slammed emerging market currencies and equities as Trump's campaign pledges to rewrite trade deals and a steep rise in U.S. interest rates and the value of the dollar, which increases the cost of repaying loans many countries have in U.S. currency, have sent investors fleeing for the exits.
U.S. Treasury yields edged up slightly after the GDP data, and as investors prepared for new Treasury supply next week.
Benchmark 10-year Treasury yields US10YT=RR rose to 2.577 percent. Yields have risen by around 80 points since the U.S. election.
Oil prices rose by around 1 percent, spurred by the pause in the dollar rally and optimism that crude producers would abide by an agreement to limit output to prop up prices. prices CMCU3 fell to one-month lows as a sharp drop in imports by top consumer China fuelled worries about demand.