GLOBAL MARKETS-Dollar, bond yields up on strong U.S. data; Wall Street slips

* Dollar gains against euro after ECB comments

* Wall Street falls, European stocks pare losses

* U.S. Treasury yields hit multi-week highs

* Graphic: World FX rates in 2017 http://tmsnrt.rs/2egbfVh (Updates to U.S. open, changes byline, previous dateline LONDON)

By Sinead Carew

NEW YORK, Jan 19 (Reuters) - The dollar rose against the euro on Thursday after comments from the European Central Bank chief, while U.S. Treasury yields gained on a batch of solid U.S. economic data.

Trading in European equities and the euro was choppy after ECB President Mario Draghi reaffirmed interest rates would stay at current or lower levels for an extended period and that the central bank was ready to increase or extend bond purchases if the outlook worsens.

U.S. shares slipped as investors remained cautious ahead of the inauguration of President-elect Donald Trump on Friday.

Oil futures rallied from one-week lows after the International Energy Agency said crude markets were tightening. The S&P 500's energy index, however, traded lower.

Benchmark 10-year Treasury notes fell 20/32 in price to yield 2.46 percent, up from 2.39 percent late on Wednesday. Yields had hit their highest since Jan. 4 after data showed U.S. homebuilding rebounded in December and the number of Americans filing for unemployment benefits unexpectedly fell last week to a near 43-year low.

"This morning we had some economic news which came out stronger than anticipated," said Gary Pollack, head of fixed-income trading at Deutsche Bank Private Wealth Management in New York.

The data was not enough to encourage U.S. equity investors, which have been holding fire ahead of the inauguration as they wait to see if Trump will carry through on pro-business promises such as tax cuts, fiscal stimulus and lighter regulation that had sent stocks soaring after the election.

"Investors' concerns on Trump delivering his campaign promises is probably the real 'Fear Factor'," Peter Cardillo, chief market economist at First Standard Financial, wrote in a note.

The Dow Jones Industrial Average was down 46.11 points, or 0.23 percent, to 19,758.61, the S&P 500 had lost 4.79 points, or 0.21 percent, to 2,267.1 and the Nasdaq Composite fell 9.71 points, or 0.17 percent, to 5,545.94.

The FTSEurofirst 300 index of European companies was down 0.19 percent after falling as much as 0.4 percent earlier in the session.

The euro clawed back losses against the dollar in choppy trade and was last flat after falling as much as 0.4 percent. The currency had dipped after Draghi's comments.

The dollar rose against a basket of major currencies, boosted by the solid U.S. data and comments a day earlier by Federal Reserve Chief Janet Yellen that signaled a path of steady interest rate increases for the world's largest economy.

Yellen was due to speak again later on Thursday about the economic outlook and monetary policy.

Bucking the trend of Asian shares, which fell 0.24 percent, Japan's Nikkei stock index ended up 0.94 percent, helped by a weaker yen.

The pound was up 0.4 percent at $1.2311 after a wild few Brexit-fueled days that saw its biggest rise in decades against the dollar and two of its heaviest slumps in months.

U.S. crude added 0.9 percent to $51.55 per barrel, after shedding 2.67 percent on Wednesday. Brent crude rose 0.8 percent to $54.34 after settling down 2.79 percent the day before.

(Additional reporting by Karen Brettell and Dion Rabouin Patrick Graham and Kit Rees in London, Lisa Twaronite in Tokyo; Editing by Larry King and Meredith Mazzilli)