By Marc Jones
LONDON, (Reuters) - Mixed U.S. and European economic data weighed on U.S. shares and European stocks on Wednesday, while the euro slipped ahead of a closely watched European Central Bank policy meeting.
Stocks on Wall Street fell slightly after an industry report on the U.S. private-sector labor market came in weaker than expected, but pared some losses after data showed better-than-expected U.S. services sector growth. Yields on benchmark 10-year U.S. Treasury notes edged higher.
MSCI's all-country world index of equity performance in 45 countries fell 0.81 points or 0.19 percent, to 421.23, while the pan-European FTSE Eurofirst 300 index of regional shares dropped 0.17 percent at 1,372.45.
"With some data strong and other data weak, we don't have a clear picture of the market or the economy right now," said Adam Sarhan, chief executive of Sarhan Capital in New York.
About 179,000 private-sector jobs were added in May, well below the 210,000 that had been expected, according to the ADP National Employment Report. April's job gains were revised lower by 5,000.
The Dow Jones industrial average fell 31.56 points or 0.19 percent, to 16,690.78, the S&P 500 lost 1.49 points or 0.08 percent, to 1,922.75 and the Nasdaq Composite added 3.719 points or 0.09 percent, to 4,237.799.
The euro EUR= was last down 0.11 percent against the dollar at $1.3612 after data showed the 18-nation bloc's economy expanded by just 0.2 percent in the three months to March, cementing investor expectations that the ECB is headed for further action to ease policy on Thursday.(Full Story)
"It seems unlikely the ECB would disappoint in terms of action," said CMC Markets analyst Jasper Lawler.
The dollar held near a 3-1/2 month high against a basket of currencies after getting a lift from rising Treasury rates after the services sector data. The Institute for Supply Management said its services sector index rose to 56.3 in May from 55.2 in April, topping expectations for a read of 55.5.
The dollar index, which tracks the greenback versus a basket of six currencies, rose 0.071 points or 0.09 percent, to 80.625.
Benchmark 10-year Treasury notes were last down 4/32 to yield 2.6076 percent, rising to levels not seen since mid-May.
Brent crude futures rose following a sharper-than-expected drop in U.S. oil inventories. Brent crude for July delivery was last up $0.37, or up 0.34 percent, at $109.19 a barrel. U.S. crude was last up $0.78, or up 0.76 percent, at $103.44 per barrel.
(Reporting by Sam Forgione; additional reporting by Marc Jones and Lionel Laurent in London, Blaise Robinson in Paris, and Ryan Vlastelica in New York; Editing by Chizu Nomiyama)
