* Expected ECB stimulus later in week keeps euro pressured
* Wall Street flat after U.S. ISM manufacturing data
* Copper jumps after Chinese data, oil off on USD strength
(Updates with ISM factory data details, changes comments)
By Rodrigo Campos
NEW YORK, June 2 A global gauge of equities was
little changed near a multi-year high on Monday after strong
Chinese and U.S. factory data, while soft data out of Europe
heightened expectations for action from the European Central
Bank, pressuring the euro.
U.S. stocks pared losses to trade little changed on the day
after the Institute for Supply Management's manufacturing index
for May, initially reported as showing a slowdown in the pace of
factory growth, was revised to show a faster acceleration than
in the previous month.
"People are still looking for signs that the economy is
recovering, and the first ISM number had people questioning the
strength of the economy," said John Carey, portfolio manager at
Pioneer Investment Management in Boston.
"This revision gives us more reason to be confident, and it
isn't surprising to see stocks recover a bit."
The Dow Jones industrial average rose 19.3 points or
0.12 percent, to 16,736.47, the S&P 500 gained 0.7 points
or 0.04 percent, to 1,924.27 and the Nasdaq Composite
dropped 12.47 points or 0.29 percent, to 4,230.15.
Slight gains in European shares and a 2.1 percent
jump in Tokyo's Nikkei lifted MSCI's world index
to a fresh intraday high of 6-1/2 years and
about 1.5 percent away from its lifetime record.
Yields on U.S. Treasuries hovered near their session highs
after the ISM correction. The yield on the benchmark 10-year
Treasury was recently at 2.537 percent, up 8 basis
points from late on Friday.
Slower-than-expected manufacturing growth in the euro zone
piled pressure on the ECB to act aggressively when it meets on
Thursday, keeping the euro at a near four-month low versus the
The euro fell 0.25 percent to hit $1.3599, not far
from a near four-month low of $1.3586 touched last Thursday.
Extra pressure for the ECB to act aggressively came from
German annual inflation data, which showed a slowdown to its
weakest rate in nearly four years in May.
"The euro has been trading on the softer side in general as
we go into the ECB meeting as there is some level of caution,"
said Alan Ruskin, global head of G19 currency strategy at
Deutsche Bank in New York.
The greenback was broadly stronger. It rose 0.6 percent to
102.38 yen and a gauge against a basket of currencies
rose 0.3 percent.
The relative strength in the U.S. currency weighed on oil
prices, but copper jumped as China's manufacturing activity
expanded at the fastest pace in five months in May, raising
expectations of an increase in demand.
Three-month copper on the London Metal Exchange
climbed 1.2 percent to $6,927 a tonne. The metal gained 3.1
percent in May, its first monthly advance since December.
With risk appetite strong, safe-haven gold slid for a fifth
straight session. Spot gold was at $1,242 an ounce after
earlier hitting a four-month low of $1,240.69.
Oil also slipped as the stronger dollar weighed.
(Reporting by Rodrigo Campos, additional reporting by Ryan
Vlastelica, Daniel Bases and Richard Leong; Editing by Chizu