GLOBAL MARKETS-Stocks lose ground, US yields rise after strong US data

(New throughout, updates prices, adds analyst comment)

By Chibuike Oguh and Harry Robertson

NEW YORK/LONDON, Jan 7 (Reuters) -

Global stocks lost ground while U.S. Treasury yields edged higher on Tuesday after data showed the American economy remained resilient.

U.S. services sector activity accelerated in December, beating expectations, while a measure of prices paid for inputs rose to near a two-year high, according to data from the Institute for Supply Management.

Labor Department data also showed U.S. job openings unexpectedly increased in November although a softening in hiring pointed to a slowing labor market.

On Wall Street, all three main indexes were trading lower, with consumer discretionary, technology and communication services stocks among the biggest losers. Energy, healthcare and materials stocks were advancing.

European stocks held their gains after rallying on Monday following a report saying President-elect Donald Trump's aides are considering narrower tariffs than previously thought.

"The Trump trade has taken a bit of a breather right now because bond yields have been rising," said Wasif Latif, chief investment officer at Sarmaya Partners in New York. "I think the market is beginning to take note that between tariffs and the deficit that there's question marks about how we're going to be able to lower the deficit with all this promised spending coming in terms of tax cuts and other things the new administration wants to implement."

The Dow Jones Industrial Average fell 0.10%, to 42,663.38, the S&P 500 fell 0.74% to 5,931.30 and the Nasdaq Composite fell 1.50%, to 19,566.71.

The European STOXX 600 index rose 0.32% for the second consecutive day of gains. It rose 0.95% on Monday following the report on tariffs, which caused shares of automakers to rally. MSCI's gauge of stocks across the globe fell 0.44% to 849.16.

Benchmark 10-year Treasury yields hit an eight-month high, buoyed by data showing the U.S. economy remained strong. The yield on 10-year notes rose 6.9 basis points to 4.685%, having peaked at 4.699%, the highest since April 26.

"The 10-year continues to inch higher and the equity market hasn't picked up on the fact that bond yields are rising, and rising long-term yields is not good for equities," Latif added.

The dollar index, which measures the greenback against a basket of currencies including the yen and the euro, rose 0.12% to 108.44, with the euro down 0.22% at $1.0367.

The greenback rose to a near six-month peak against the Japanese yen after the U.S. data. It was up 0.1% at 157.740 yen . Earlier in the global session, the dollar hit its highest since July at 158.425 yen.

Oil prices gained, driven by concerns over tighter supply from Russia and Iran because of Western sanctions and expected higher Chinese demand.

Brent crude futures advanced 0.89% to $76.98 a barrel while U.S. West Texas Intermediate crude was up 0.87% at $74.19.

Gold prices gained. Spot gold rose 0.66% to $2,652.80 an ounce. U.S. gold futures rose 0.72% to $2,657.50 an ounce.

(Reporting by Harry Robertson in London and Chibuike Oguh in New York; editing by Barbara Lewis and Chris Reese)