* 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 LONDON)
By Herbert Lash
NEW YORK, June 23 (Reuters) - 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 years.
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 yen.
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