New York: Stock prices around the world fell on Wednesday on profit-taking, while the euro dropped to an 11-1/2-year low ahead of a European Central Bank meeting where policymakers are expected to offer details on their bond-purchase stimulus plan.
The Dow Jones industrial average and Standard & Poor's 500 retreated further from record highs set on Monday while major gauges of European and Japanese shares were below their multi-year peaks.
"Given the strength we've had in the equity markets since the beginning of February, we are transitioning into a sideways-trending market as investors digest the recent gains and look for greater clarity," said Terry Sandven, senior equity strategist at US Bank Wealth Management in Minneapolis.
Brent crude fell on data showing US crude inventories climbed to a record high in the latest week. It held above $60 a barrel on Iran's opposition to a nuclear deal and supportive market comments from Saudi Arabia's oil minister.
The US government's February payrolls report due on Friday is seen as the week's premier data. Further evidence of jobs and wage growth would support the notion the Federal Reserve will raise interest rates as early as this summer.
Payroll processor ADP said on Wednesday US companies added 212,000 workers last month, slightly less than forecast, paring bets on a robust February payroll figure.
Economists polled by Reuters projected US payrolls grew 240,000 in February, below January's 257,000 increase.
The benchmark US 10-year Treasury note yield was flat at 2.12 per cent, paring its decline after a stronger-than-expected report on the U.S. services sector.
The Dow lost 106.47 points, or 0.58 per cent, to 18,096.90, the S&P 500 slipped 9.25 points, or 0.44 per cent, to 2,098.53 and the Nasdaq Composite fell 12.76 points, or 0.26 per cent, to 4,967.14.
The pan-European FTSEurofirst 300 index ended up 0.8 per cent at 1,557.03, recovering from a drop on Markit's final euro zone composite purchasing managers' index that came in weaker than estimated.
The MSCI world equity index, which tracks shares in 45 nations, slipped 0.48 per cent to 429.28.
Lower stock prices moved in tandem with a weaker euro. The currency fell 0.9 per cent to $1.1073 after touching $1.1063, the lowest since September 2003.
The euro hit a near one-month low against the yen. It was last down 0.9 per cent at 132.55 yen.
The dollar strengthened against a basket of currencies, hitting an 11-1/2-year peak. It was last up 0.6 per cent at 95.963. The greenback, however, was little changed at 119.71 yen.
Brent crude settled down 47 cents or 0.8 per cent, at $60.55 a barrel but US crude settled up $1.01 or 2 per cent at $51.53.
Spot gold fell $4.21 or 0.35 per cent to $1,199.10 an ounce, declining for a third straight day.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
