Wall Street rally eases into year-end

US stocks closed slightly lower as a trio of better-than-expected economic data wasn't enough to entice buying in a market sitting on strong gains just before the new year.

The Dow Jones industrial average dropped 15.59 points, or 0.13 percent, to 11,569.79. The Standard & Poor's 500 Index dropped 1.85 points, or 0.15 percent, to 1,257.93. The Nasdaq Composite Index dropped 3.95 points, or 0.15 percent, to 2,662.98.

European shares closed lower, paring some of December's strong gains on the last day of trading in countries including Germany, Spain and Italy, with China growth and euro zone debt concerns weighing on sentiment.

The FTSEurofirst 300 closed down 1.3 percent at 1,128.55 points, and while the fall is the largest one-day retreat this month, the benchmark index remains on track to record its biggest monthly gain since March.

Japan's Nikkei average ended the year on a sour note, pressured by profit-taking as the yen advanced to a fresh seven-week high against the dollar.

The benchmark Nikkei booked a 3 percent loss for 2010 as the yen's strength over the course of the year stoked worries about the outlook for Japan's export-led economy. In 2009, the Nikkei had gained 19 percent led by a rally in high-tech exporters.