* U.S. shares gain on strong U.S. services sector data
* S&P 500 closes at record high
* European shares flat, euro lower ahead of ECB meeting
* Bond yields rise on U.S. services sector data
(Updates to close of U.S. markets)
By Sam Forgione
NEW YORK, June 4 U.S. shares rebounded on
Wednesday after strong data on the U.S. services sector, while
soft European economic data weighed on European equities and
weakened the euro a day ahead of a closely watched European
Central Bank policy meeting.
Better-than-expected U.S. services sector growth drove gains
on Wall Street and boosted the S&P 500 to a record closing high,
reversing earlier losses on an industry report showing weakness
in the U.S. private-sector labor market. Yields on benchmark
10-year U.S. Treasury notes edged higher.
MSCI's all-country world index of equity
performance in 45 countries rose 0.08 points, or 0.02 percent,
to 422.12, while the pan-European FTSE Eurofirst 300
index of regional shares closed flat at 1,374.75.
The Institute for Supply Management said its U.S. services
sector index rose to 56.3 in May from 55.2 in April, topping
expectations for a read of 55.5. A reading above 50 indicates
"The ISM number was a clear beat and reversed us," said
Robert Francello, head trader at Apex Capital in San Francisco.
"People wanted to see something at least solid to keep us stable
before the ECB tomorrow."
Earlier, the ADP National Employment Report showed about
179,000 private-sector jobs were added in May, below the 210,000
that had been expected. April's job gains were revised downward
The government will release its more comprehensive labor
report on Friday.
The Dow Jones industrial average closed up 15.13
points or 0.09 percent, to 16,737.47, the S&P 500 gained
3.62 points or 0.19 percent, to 1,927.86 and the Nasdaq
Composite added 17.562 points or 0.41 percent, to
The euro was last down 0.21 percent, at $1.3598,
after data showed the 18-nation bloc's economy expanded by just
0.2 percent in the first quarter, cementing investor
expectations that the ECB is headed for further monetary easing
"The ECB meeting is very critical," said Rod Smyth, chief
investment strategist at RiverFront Investment Group in
Richmond, Virginia. "A move to a negative interest rate is
The dollar held near a 3-1/2-month high against a basket of
currencies after getting a lift from rising Treasury rates
following the services sector data. The dollar index,
which tracks the greenback versus a basket of six currencies,
rose 0.115 points or 0.14 percent, to 80.669.
Benchmark 10-year Treasury notes were last down
3/32 in price to yield 2.6039 percent, with the yield rising to
levels not seen since mid-May.
Brent crude for July delivery was last down $0.51,
or down 0.47 percent, at $108.31 a barrel. U.S. crude was
last down $0.25, or down 0.24 percent, at $102.41 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, Leslie Adler
and Meredith Mazzilli)