Stocks, euro slip after weak data
By Wanfeng Zhou
NEW YORK (Reuters) - Global stocks and the euro fell on Wednesday after data showed U.S. companies hired the fewest people in seven months in April and the euro zone's factory sector slipped further.
The reports came a day after an index of U.S. factory activity posted its strongest growth rate in 10 months and sent the Dow Jones industrial average to its highest close in four years.
The S&P 500 and the Dow declined as investors turned cautious ahead of Friday's U.S. nonfarm payrolls report for April, while government debt prices advanced on safe-haven demand.
U.S. companies added only 119,000 jobs last month, well short of expectations of 177,000, a worrisome sign of a labor market that has struggled to gain traction.
"If fewer and fewer people are participating in this recovery it suggests underlying weakness that we have to address, and so far policymakers' answers have been 'easy credit' - I think we need to go beyond that," said Jack Ablin, chief investment officer at Harris Private Bank in Chicago.
The ADP jobs report followed more discouraging economic news from Europe. Euro zone factories sank further into decline last month, with the downturn hitting Italy and Spain hard and appearing to take root among core members France and Germany.
The Dow Jones industrial average .DJI ended down 10.75 points, or 0.08 percent, at 13,268.57. The Standard & Poor's 500 Index .SPX was down 3.51 points, or 0.25 percent, at 1,402.31. The Nasdaq Composite Index .IXIC added 9.41 points, or 0.31 percent, at 3,059.85.
The MSCI world equity index .MIWD00000PUS fell 0.3 percent to 328.35. European shares erased early gains, with the FTSEurofirst 300 .FTEU3 ending down 0.4 percent. Continued...