The US ISM services index fell to an 8-month low of 52.8 in April, down from 57.3 in March and below expectations of a reading near 57.4. The new orders index was at the lowest level since December 2009. The ADP employment survey showed that private sector jobs rose by 179,000 in April, below the 207,000 lift in March and short of expectations for a gain near 200,000. But planned job cuts by US businesses fell to 36,490 in April from 41,428 in March.

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European shares fell for the second straight day on Wednesday. Commodity prices continued to slide, US economic data was weaker than expected and investors fretted that China would continue to tighten monetary policy. In London trade shares in BHP Billiton lost 2.6pct with Rio Tinto down 3.3pct. The FTSEurofirst index fell by 1.4pct with the German Dax lower by 1.7pct and the UK FTSE was down by 1.6pct.

US sharemarkets fell on Wednesday in response to weaker-than-expected economic data and corporate profit news. Shares in food giant Kellogg fell by 1.2pct after profits fell short of estimates due to cost increases. The Dow Jones index fell by 84pts or 0.7pct with the S&P 500 lower by 0.7pct and the Nasdaq was down by 13.4pts or 0.5pct. After the bell News Corp reported quarterly earnings of 24c a share, down from 32c a share a year ago.

US treasuries rose for a fourth straight day in response to weaker equity markets and weaker-than-expected economic data. US 2yr yields fell by 2pts to 0.59pct and US 10yr yields fell by 3pts to 3.22pct.

Major currencies were again little changed on the Asian close following the completion of European and US trade on Wednesday. But commodity currencies like the Aussie dollar lost ground. The Euro traded from lows near US$1.4800 to US$1.4940, before ending US trade near US$1.4820. The Aussie dollar eased from highs near US108.75c to around US107.30c before ending US trade near US107.35c. And the Japanese yen lifted from near 81.20 yen per US dollar to JPY80.40, before closing US trade at JPY80.60.

US and European crude oil prices fell again on Wednesday in response to softer US economic data. Also weighing on prices was data showing a 3.4 million barrel increase in US crude stocks in the latest week. The Nymex crude oil contract fell by US$1.81 or 1.6pct to US$109.24 a barrel. London Brent crude fell by US$1.26 to US$121.19 a barrel.

Base metal prices fell sharply on the London Metal Exchange on Wednesday, down between 1.6-5.4pct with nickel doing worst and aluminium faring best. But gold continued to slump alongside silver. The Comex gold futures price fell by US$25.10 an ounce or 1.6pct to US$1,515.30. The silver price slumped by 7.5pct to US$39.19 an ounce.

Ahead: In Australia, retail trade and building approvals data is released. NAB releases its half profit result. Rio Tinto holds its AGM. In the US, weekly jobless claims data is released.

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