Global stocks lower on euro zone recession worries

Banks led stocks lower on Wednesday as the S&P 500 stalled near a 10-month-high after signs of weak European business activity rekindled concerns about a recession overseas.

The Dow Jones industrial average was down 26.72 points, or 0.21 percent, at 12,938.97. The Standard & Poor's 500 Index was down 4.57 points, or 0.34 percent, at 1,357.64. The Nasdaq Composite Index was down 15.40 points, or 0.52 percent, at 2,933.17.

European shares fell for the second consecutive session as euro zone purchasing managers data suggested the region could tip into recession and potentially have a knock-on effect to company profits.

Investor sentiment took a hit after the Markit's Eurozone Services Purchasing Managers' Index (PMI) missed forecasts, raising questions about whether Greece can recover from its economic slump and implement the austerity measures required under its fresh bailout programme.

The pan-European FTSEurofirst 300 index of top shares closed down 0.8 percent at 1,077.07 points for the second day after gaining 1.8 percent last week, although volume was low at 81.4 percent of its 90-day daily average.