Global shares fall after weak euro zone, US data

The S&P 500 and the Dow edged lower on Wednesday as data showed that private sector hiring unexpectedly fell to a seven-month low in April, sparking concerns that Friday's key jobs report will also disappoint investors.

The Dow Jones industrial average dropped 10.75 points, or 0.08 percent, to 13,268.57. The Standard & Poor's 500 Index fell 3.52 points, or 0.25 percent, to 1,402.30. The Nasdaq Composite Index gained 9.41 points, or 0.31 percent, to 3,059.85.

The Dow on Tuesday hit a four-year high after strong manufacturing data, while the S&P 500 has struggled to make a meaningful rise above the 1,400 resistance level. Still, the S&P is up more than 11 percent for the year.

European shares fell after a weak euro zone manufacturing report heightened concerns about the region's economic crisis and US data dampened optimism that the world's largest economy could drive growth on both sides of the Atlantic.

The Euro STOXX 50 index fell 0.7 percent to 2,290.31 points, while the pan-European FTSEurofirst 300 index closed down 0.4 percent at 1,043.65 points.

Earlier, Japan's Nikkei share average gained a modest 0.3 percent, buoyed by an easing yen after US manufacturing data beat expectations, but investors were restrained ahead of national holidays and European elections at the weekend.

The dollar was lifted by a report from the Institute of Supply Management showing U.S. manufacturing grew at its highest rate for 10 months in April, which in turn pulled the benchmark Nikkei up from the 2-1/2-month low it hit on Tuesday.

The Nikkei ended up 29.3 points at 9,380.5, below its 13-week moving average of 9,521.19.