NEW YORK (Reuters) - Global equity markets fell for a second straight day on Wednesday on mostly weak economic data while metals prices slipped on renewed concerns of a downturn in global growth.
The U.S. services sector expanded in April as new orders and employment accelerated, but the growth outlook dimmed on another report showing private employers hired the fewest number of American workers in three years last month.
In Europe, surveys indicated that growth in the euro zone will be slow but steady, underscoring concerns about the vulnerability of the bloc's upturn.
Retail sales also fell across the euro zone as a whole in March, adding to the cautionary tone.
The price of copper, often viewed as a growth harbinger, fell due to selling triggered by a stronger dollar and manufacturing surveys from around the world.
Benchmark copper CMCU3 on the London Metal Exchange closed down 1.4 percent at $4,850.00 a tonne. A higher U.S. currency makes dollar-denominated commodities more expensive for non-U.S. firms.
MSCI's all-country world index .MIWD00000PUS of stock performance in 46 countries fell 0.92 percent, while the pan-regional FTSEurofirst 300 index .FTEU3 closed down 1.2 percent to 1,302.72 points, its lowest close in nearly four weeks.
The index of leading European shares lost 1.7 percent on Tuesday.
"We may have the odd move higher, but we remain in a longer-term bear market," said Andreas Clenow, chief investment officer of ACIES Asset Management in Zurich.
Lackluster manufacturing data from around the world had sparked the selling on Tuesday, notably Chinese factory activity shrinking for the 14th straight month and British output at three-year lows.
Shares of global diversified miner BHP Billiton (BLT.L) tumbled 5.8 percent, hit by news of a 155 billion-real ($43.5 billion) lawsuit filed in Brazil against iron ore miner Samarco, owned by BHP and Vale (VALE5.SA).
On Wall Street, stocks fell even as data showed the vast U.S. services sector expanded in April as new orders and employment accelerated, bolstering views that economic growth would rebound after almost stalling in the first quarter.
However, other data showing private employers hired the fewest workers in three years in dimmed the U.S. economic outlook.
The Dow Jones industrial average .DJI fell 99.65 points, or 0.56 percent, to 17,651.26. The S&P 500 .SPX closed down 12.25 points, or 0.59 percent, to 2,051.12 and the Nasdaq Composite .IXIC is lost 37.59 points, or 0.79 percent, to 4,725.64.
The ADP private sector employment report showed hiring in April fell to its lowest levels in three years. The report acts as a precursor to the more comprehensive government nonfarm payrolls data, due on Friday.
"Businesses are a little more worried about the outlook than they were previously. They're a bit cautious," said Russell Price, senior economist at Ameriprise Financial Services Inc in Troy, Michigan.
Price, who sits on Ameriprise's global asset allocation committee, said the S&P 500 may experience two drops of up to 10 percent this year, but will end the year ahead about 6 percent.
U.S. Treasury yields fell to their lowest in two weeks, with the price of the benchmark 10-year Treasury note US10YT=RR rising 7/32 to yield 1.7752 percent.
German Bunds steadied, with soft data underpinning demand. The 10-year Bund yield was flat at 0.20 percent DE10YT=TWEB, having reversed an earlier rise of about 2 basis points.
The dollar index .DXY, which measures the greenback against a basket of six major trading currencies, rose 0.31 percent to 93.228. The dollar strengthened against the yen 0.3 percent to 106.91, and against the euro EUR= it gained 0.04 percent to $1.1490.
Oil prices reversed gains as a bigger-than-expected rise in U.S. crude stocks tempered concerns about reduced production in Canada's oil sands region due to a wildfire.
U.S. crude stocks grew by 2.8 million barrels in the lastweek, versus expectations of a 1.7 million barrel build, Energy Information Administration data showed. Gasoline stocks also posted a surprise increase.
Brent crude LCOc1 fell 35 cents to settle at $44.62 a barrel, while U.S. crude CLc1 rose 13 cents to settle at $43.78 a barrel.
Reporting by Herbert Lash; Editing by Meredith Mazzilli and Nick Zieminski