GLOBAL MARKETS-Shares stall near record high as year draws to close

(Updates prices throughout, adds European indexes)

* MSCI world index flat, set for best year since 2009

* European shares down, dollar index edges lower

* China stocks under pressure as tech shares retreat

* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh

By Danilo Masoni and Swati Pandey

MILAN/SYDNEY, Dec 23 (Reuters) - World stocks stalled near record highs and

currency markets were little changed on Monday as trading dwindled before the

Christmas holiday and investors took profit on gains made this month.

The pan-European STOXX 600 .STOXX index was down 0.14% by 0851 GMT, after

nearing a record high in the previous session. MSCI's broadest index of

Asia-Pacific shares outside Japan .MIAPJ0000PUS was near its highest since

June 2018, up 0.05%.

The MSCI all-country stock index < .MIWD00000PUS> was flat, just below

Friday's record high. It has risen nearly 3% this month as U.S.-China trade

tensions eased and confidence grew that Britain would avoid a chaotic exit from

the European Union. The index is up 23% so far in 2019, set for its best year

since 2009.

U.S. President Donald Trump said on Saturday the United States and China

would "very shortly" sign phase one a trade agreement. It calls for

the United States to reduce some tariffs in exchange for China's buying more

American farm products. China said on Monday it would lower tariffs on products

ranging from frozen pork and avocado to some types of semiconductors next year.

"The Phase 1 (P1) agreement and UK elections have cleared up tail risks, but

the market is now transcending that euphoria," said Stephen Innes, strategist at

AxiTrader.

"While P1 is already reflected in stock prices, positioning is still

relatively light, and with plenty of capital yet to be deployed, markets could

even push significantly higher supported by the global growth rebound," he

added.

On Friday, the U.S. benchmark S&P 500 .SPX extended its record highs to

seven straight sessions, its longest streak in more than two years. All three

major U.S. indexes - the S&P 500, Nasdaq and Dow - gained. .N .

Data on Friday showed U.S. growth rose in the third quarter and the economy

was probably maintained its expansion as the year ended. Consumer spending was

stronger than previously reported, and there were upgrades to business spending.

During Asian hours on Monday, Japan's Nikkei .N225 was little changed

after reaching a 14-month top last week. It was up 2.3% for the month so far.

Chinese stocks posted their worst single-day drop in six weeks, weighed down

by a correction in tech shares after a state fund announced plans to cut its

stakes in some chip makers. The U.S. personal consumption expenditure deflator for November, due on

Friday, is the only major economic report this week.

In currency markets, the euro EUR= was at $1.1083, up 0.05% after slipping

0.4% last week. Sterling GBP= was at $1.3027, edging up 0.18% from Friday's

three-week low of $1.2976. It slid 2.6% last week for its worst weekly showing

since October 2017. The safe-haven Japanese yen was

down 0.08% at 109.35. JPY=

That left the dollar index .DXY at 97.604, down 0.09% against six major

currencies.

In commodities, Brent crude LCOc1 was down 23 cents to $65.95 a barrel.

West Texas Intermediate crude CLc1 slipped 24 cents to $60.2 a barrel.

Spot gold XAU= was up 0.4% at $1,484.07 an ounce.

Asia stock markets https://tmsnrt.rs/2zpUAr4

Asia-Pacific valuations https://tmsnrt.rs/2Dr2BQA

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