* Shares slip from Monday's record or multi-year highs
* Euro gains after inflation data not worse than expected
* Brent slips toward $108 as weak refining demand bites
(Adds close of European stock, bond trading)
By Herbert Lash
NEW YORK, June 3 Global equity markets slipped
on Tuesday from record or multi-year highs, while euro zone
inflation data gave the euro some respite on relief that price
growth in the single currency zone had not slowed even further.
Stocks on Wall Street were lower, following declines across
Europe, but emerging market stocks rose, lifted in part by
rising Brazilian and Mexican shares. Bond yields moved higher.
MSCI's all-country world index of equity
performance in 45 countries fell 0.1 percent, while the
pan-European FTSE Eurofirst 300 index of regional
shares fell 0.41 percent to a provisional close of 1,374.78.
"Valuations are elevated, and therefore anything that looks
soft gives the market pause," said Mark Luschini, chief
investment strategist at Janney Montgomery Scott in
The Dow Jones industrial average fell 25.62 points,
or 0.15 percent, at 16,718.01. The Standard & Poor's 500 Index
was down 2.29 points, or 0.12 percent, at 1,922.68. The
Nasdaq Composite Index was down 9.10 points, or 0.21
percent, at 4,228.10.
Both the S&P 500 and Dow industrials closed at record highs
on Monday, while MSCI's gauge of global equities closed at more
than a six-year high, about 1.4 percent away from all-time highs
set in late 2007.
The euro rose 0.21 percent to 1.3623 against the
dollar as traders believe its recent weakness fully prices in an
aggressive European Central Bank interest rate cut on Thursday.
The rate of euro zone inflation fell in May, increasing the
risks of deflation, as core inflation, excluding energy, food,
alcohol and tobacco, fell to 0.7 percent from 1.0 percent in
However, with most speculators already running big bets
against the euro, traders said, even the weak figure was not
enough to take the euro lower.
U.S. Treasuries yields rose to their highest in three weeks
as investors reset bets that yields are likely to rise, after
they fell to 11-month lows last week.
German bund yields spiked after euro zone inflation was
in-line with revised expectations, prompting some in the market
who had expected an even weaker number to book profits after a
Benchmark 10-year notes were last down 8/32 in
price to yield 2.5626 percent.
German 10-year yields, the benchmark for euro
zone borrowing, rose to 1.361 percent.
Brent crude oil futures slipped toward $108 a barrel,
reflecting weak European refining demand. Brent futures for July
were down 27 cents at $108.56 a barrel. U.S. crude
was down 6 cents at $102.41 a barrel.
(Reporting by Herbert Lash; Additional reporting by Nigel
Stephensen; Editing by Chizu Nomiyama and Dan Grebler)