Wall Street slips in light trade, pullback mulled

Market breadth weakened and a prominent investor retreated from bullish positions as a vulnerable US stock market slipped off 2-1/2-year highs.

The Dow Jones industrial average lost 41.55 points, or 0.34 percent, at 12,226.64. The Standard & Poor's 500 Index fell 4.31 points, or 0.32 percent, at 1,328.01. The Nasdaq Composite Index slipped 12.83 points, or 0.46 percent, at 2,804.35.

European shares edged to a fresh 29-month closing high, as Barclays led the banking sector up on the back of forecast-beating profits.

The pan-European FTSEurofirst 300 index of top shares rose 0.2 percent to 1,180.05 points, its highest close since early September 2008.

Japan's Nikkei stock average edged up to log a 10-month closing high after Chinese inflation data helped ease concerns that the country will have to tighten monetary policy more aggressively.

The Nikkei average ended up 0.2 percent or 21.13 points to 10,746.67, the highest closing price since April 30, 2010. The broader Topix rose 0.4 percent to 962.57.