* Euro zone business activity growth slows as France lags
* Treasuries lifted by limp euro economic data
* Euro dips, even as upbeat China PMI supports Aussie dollar
(Adds opening of U.S. markets, byline, dateline; previous
By Herbert Lash
NEW YORK, June 23 Global equity markets traded
slightly lower and the dollar weakened against the yen on Monday
after euro zone business activity for June showed growth
slowing, with France a notable laggard, despite upbeat U.S. and
Chinese economic data.
Yields on U.S. Treasuries also fell even as data on U.S.
home resales suggested housing was pulling out of a recent slump
and a measure of U.S. manufacturing and its key subindexes
advanced in June to their highest levels in more than four
The euro zone's private sector expansion unexpectedly slowed
even though companies are still cutting prices to drum up
business, according to Markit's Composite Purchasing Managers'
Index (PMI), which fell to 52.8 from May's 53.5.
Treasuries rose, with the largest gains in longer-dated
maturities, with the benchmark 10-year notes up 5/32
in price to yield 2.6044.
"Prices are up here mainly because some of the data we got
overnight and over the weekend were somewhat on the
disappointing side, most notably France," said Stan Shipley,
fixed-income strategist at ISI Group in New York.
MSCI's all-country world stock index fell
0.03 percent, while the FTSEurofirst 300 index of
leading European shares fell 0.28 percent to 1,391.10 points.
The Dow Jones industrial average fell 31.48 points,
or 0.19 percent, to 16,915.6. The S&P 500 lost 0.52
points, or 0.03 percent, to 1,962.35 and the Nasdaq Composite
dropped 2.637 points, or 0.06 percent, to 4,365.4.
The euro struggled against the dollar after the
softer business-sentiment surveys, but optimism over China's
economic prospects drove the Australian, New Zealand and
Canadian dollars higher.
The euro fell 0.03 percent against the dollar to $1.3595.
Against the yen, the dollar was 0.18 percent weaker at 101.88
Crude oil slipped. Brent was down 56 cents at
$114.25. U.S. crude for August delivery was down 49 cents
at $106.34. The July contract expired on Friday.
(Additional reporting by Nigel Stephenson in London; Reporting
by Herbert Lash; Editing by Chizu Nomiyama)