* U.S. shares dip on mixed economic data
* European shares, euro slip ahead of ECB meeting
* Bond yields rise on strong U.S. services sector data
(Adds open of U.S. markets, changes byline; dateline from pvs
By Sam Forgione
NEW YORK, June 4 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
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 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.
"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
Benchmark 10-year Treasury notes were last down
4/32 to yield 2.6076 percent, rising to levels not seen since
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)