World stocks edged lower on Wednesday after data showing the euro zone may be sliding back toward recession and signs the region's crisis may be affecting China's giant economy, while Brent crude oil prices rose slightly.
Worries about Iran-related supply of crude oil pushed Brent crude oil prices to fresh nine-month highs, even as the economic data underscored concerns about the health of the global economy.
Growing worries that Greece will struggle to meet the demands of its new bailout deal also added to the uncertain tone for shares and the euro.
"I don't think anybody in their right mind thinks that they've solved Greece, but the bigger question is what do you do with the rest of these countries. They haven't gone away," said Joe Saluzzi, co-manager of trading at Themis Trading in Chatham, New Jersey.
U.S. stocks opened down slightly, while the MSCI global equity index was down about 0.4 percent and the FTSEurofirst index of top European companies was down 0.8 percent.
The Dow Jones industrial average was down 4.35 points, or 0.03 percent, at 12,961.34. The Standard & Poor's 500 Index was down 1.89 points, or 0.14 percent, at 1,360.32. The NasdaqComposite Index was down 4.68 points, or 0.16 percent, at 2,943.89.
In the U.S. Treasury market, the benchmark 10-year note was last up 7/32, with the yield at 2.0347 percent.
The euro was flat against the dollar, not far from its two-week high of $1.3293 hit on Tuesday after a second bailout deal for Greece was agreed.
The February reading on the flash euro zone services Purchasing Manager's Index (PMI) of 49.7 was below forecasts and under the 50 level that signifies contraction but followed three months of consecutive increases.
The reading along with signs of weakness in a similar index on German activity has clouded recent optimism about the resilience of Europe's economy to the region's debt crisis, although a separate survey showed France's manufacturing sector managed a marginal but unexpected return to growth in the month.
A rise in factory orders across the 17-nation euro area in December, led by an increase in new orders from Italian factories, tempered the worries, although overall industrial orders in the region were down 1.7 percent in December compared with a year ago.
CHINA FEELS EURO ZONE EFFECT
An earlier preliminary and unofficial survey of China's industrial activity showed the manufacturing sector contracting for a fourth straight month, although the HSBC flash PMI rose in February to 49.7 from 48.8 in January.
An export orders sub-index of the HSBC survey dropped to 47.4, its lowest level in eight months, and down from 50.4 in January as the European debt crisis cast a shadow over the Chinese export sector.
China's economic growth is widely seen slowing down in January to March for its fifth consecutive quarter, prompting growing hopes of further policy easing measures from China's central bank. Economists expect full-year growth to slip below 9 percent for the first time in a decade.
BRENT CRUDE OIL UP SLIGHTLY
Even as weak economic data in Europe and China cast doubt on the outlook for global growth, Brent crude oil reached a nine-month high, supported by Iran-related supply worries.
Brent crude for April delivery was up 36 cents at $122.02 (Additional reporting by Simon Falush in London and Chuck Mikolajczak in New York; Reporting by Richard Hubbard in London and Caroline Valetkevitch in New York; Editing by Theodore d'Afflisio)
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