(Adds U.S. market open, byline, dateline; previous LONDON)
* Dollar touches five-week high on U.S. rate outlook
* Global shares slide as China-linked shares decline
* Oil falls on surprise U.S. gasoline stock build
By Herbert Lash
NEW YORK, Feb 28 (Reuters) - The dollar rose to five-week highs on Wednesday after an upbeat outlook of the U.S. economy from the Federal Reserve’s new chief and the prospect of tighter monetary policy, while global equity markets slid on big declines in China-dependent shares.
Also pushing the dollar higher was euro zone inflation slowing to a 14-month low, which knocked the euro to six-week lows, and underscored the European Central Bank’s caution in removing stimulus in the region.
The greenback in February was poised to post its best monthly performance since November 2016 as it also rose to three-week highs against the Swiss franc, a two-week peak versus sterling and a two-month high against the Canadian dollar.
“The dollar has found tailwinds in America’s sturdy economy and its hawkish central bank,” said Joe Manimbo, senior market analyst, at Western Union Business Solutions in Washington.
The dollar index rose 0.25 percent, with the euro down 0.23 percent to $1.2203. The Japanese yen firmed 0.58 percent versus the greenback at 106.70 per dollar.
World stocks were set to snap a record 15-month long winning streak, pulled lower by mining heavyweights Rio Tinto and Glencore after weak factory data from China and a slide in Chinese conglomerate Tencent Holdings.
Singapore-based Sea Ltd, an online gaming and e-commerce firm that counts Tencent as its biggest shareholder, posted a larger-than-expected fourth-quarter loss and the departure of its president - the public face of its U.S. listing last year. Sea Limited was down 9.95 percent.
Business disruption due to Lunar New Year holidays and curbs to factory output from tougher pollution rules drove the weakness, but there are worries of a bigger loss in momentum.
Rio Tinto fell 3.0 percent and Glencore slid 2.56 percent, helping pull the pan-European FTSEurofirst 300 index of leading regional shares down 0.65 percent to a provisional close of 1,488.26.
Miners were some of the biggest decliners in London after growth in China’s manufacturing sector in February cooled to the weakest in more than 1-1/2 years.
On Wall Street, the Dow Jones Industrial Average fell 34.13 points, or 0.13 percent, to 25,375.9. The S&P 500 lost 1.14 points, or 0.04 percent, to 2,743.14 and the Nasdaq Composite added 0.61 points, or 0.01 percent, to 7,330.96.
Longer-dated yields slipped on expectations that a faster pace of Fed rate increases would cool U.S. inflation and economic growth.
U.S. economic growth slowed slightly more than initially thought in the fourth quarter as the strongest pace of consumer spending in three years drew in imports and depleted inventories.
Benchmark 10-year U.S. Treasury notes rose 8/32 in price to push their yield down to 2.8806 percent.
Euro zone bond yields held near recent lows as inflation in the bloc slowed, potentially complicating the European Central Bank’s plan to remove monetary stimulus and move towards raising rates.
Oil prices fell almost 2 percent and gasoline futures tumbled after the U.S. government said crude inventories rose more than expected while gasoline stocks posted a big build instead of the draw that was forecast.
U.S. crude inventories rose by 3 million barrels for the week ending Feb. 23, compared with analyst expectations for a build of 2.1 million barrels.
U.S. crude fell $1.18 to $61.83 per barrel and Brent was last at $65.53, down $1.10 on the day.
Reporting by Herbert Lash Editing by Nick Zieminski