The US ADP survey of private payrolls showed that employers added 114,000 jobs in July, above forecasts for a 100,000 gain. The ISM services index eased from 53.3 to 52.7 in July, below expectations for a result near 53.6. The Challenger job layoff series shows that employers plan to cut 66,414 positions - the highest in 16 months. And US factory orders fell 0.8pct in June - in line with forecasts.

European shares fell for a fourth straight day to fresh 11-month lows on Wednesday on continued worries about the health of the global economy. Shares in Societe Generale fell by 9pct after it released a disappointing earnings result, weighing on banking stocks. In addition investors remain concerned about debt levels in Italy after bond yields held above 6pct. The FTSEurofirst index fell by 2.0pct with the German Dax and UK FTSE both lower by 2.3pct.

US sharemarkets recovered from lows on Wednesday. Economic data was mixed causing some investors to go bargain hunting while others squared positions ahead of key jobs data out on Friday. After being down 166 points at one stage, the Dow Jones ended higher by almost 30pts or 0.3pct with the S&P 500 up by 0.5pct while the Nasdaq rose 23.8pts or 0.9pct.

US treasuries were mixed on Wednesday erasing early gains as shares recovered from their lows. Traders elected to square positions ahead of the pivotal employment data on Friday. US 2yr yields rose by 1pt to 0.332pct and US 10yr yields were steady near 2.615pct.

Major currencies were generally firmer against the US dollar over European and US sessions. The Euro rose from lows near US$1.4150 to US$1.4345, before ending the US session at US$1.4315. The Aussie dollar fell from highs near US107.85c to US106.80c, but recovered to end US trade near US107.55c. And the Japanese yen lifted from 77.35 yen per US dollar to JPY76.80, ending US trade near JPY77.05.

Benchmark crude oil prices fell sharply in response to data showing higher gasoline inventories and weak fuel demand in the US. According to the Energy Information Administration, US gasoline stocks rose for the third straight week, up by 1.7 million barrels. In addition data showed that US gasoline demand was down by 3.6pct on a year ago. Nymex crude oil fell by US$1.86 or 2.0pct to US$91.93 a barrel and London Brent crude fell by US$3.23 to US$113.23 a barrel.

Base metal prices fell on the London Metal Exchange on Wednesday as investors fretted about recent weak economic data in US, Europe and China. Metals fell between 1.5-4.0pct with nickel faring worst and copper and lead faring the best. But the gold price rose to fresh record highs as investors continued to embrace safe-haven assets. Comex December gold rose by US$21.80 an ounce or 1.3pct to US$1,666.30.

Ahead: In Australia, data on tourist arrivals is released. Rio Tinto releases half-year results. In the US, weekly jobless claims data is issued.