World stocks mixed as concerns mount over global economic recovery

World stocks mixed as growth doubts mount

MILAN — World stocks traded within a narrow range Wednesday as investors weighed fresh evidence that Europe’s banking sector was returning to health against another disappointing report about the U.S. job market.

On the downside, payroll company ADP said private employers added just 13,000 jobs in June. The weak figure follows a series of disappointing U.S. economic data showing slow and uneven recovery in the world’s largest economy.

The Dow Jones industrial average fell 13 points on the open before recovering to trade a few points higher.

European stocks, meanwhile, were buoyed by news that the European Central Bank will lend less money than expected for the next three months, suggesting banks’ cash needs are easing despite lingering worries about the eurozone debt crisis.

“The result of the ECB’s money market operations indicated that money markets have been less distorted than originally feared,” BNP Paribas said in a note.

Also providing a hopeful sign, Germany’s unemployment rate declined to 7.5 percent in June thanks not only to the traditional springtime upturn, but also an improving economy, according to the labor agency. The unadjusted jobless rate was down from 7.7 percent in May.

The FTSE 100 index of leading British shares closed up 0.05 percent at 4,916.87. Germany’s DAX was higher by 0.23 percent to 5,965.52, while France’s CAC-40 was up by 0.29 percent to 3442.89.

The Dow was up 26 points, or 0.26 percent, to 9896.30 and Standard & Poor’s 500 was ahead by 5.233 points, or 0.5 percent, to 1046.47.

The German data raised hopes that consumer spending in Europe’s biggest economy could help the region, where severe spending cuts have darkened the outlook.

However, a rate-setting member at the Bank of England warned Wednesday that austerity measures could push the British economy back into recession.

In Asia, major indexes closed down as concerns lingered about Chinese growth and lower-than-expected U.S. confidence for June all weighed during Tuesday trading as the trading year hit the mid-year point.

The second straight day of losses in Asia came after Wall Street slid overnight on news that U.S. consumer confidence dived in June, a worrisome sign for an economy driven by the spending of ordinary Americans.

The dour news about the world’s largest economy kept alarmed investors on the sidelines.

“Most investors are quite cautious and not willing to put their money back into the market,” said Castor Pang, director of research at Cinda International in Hong Kong.

He said a possible slowdown in China’s growth is also unnerving markets. Earlier this week, investor concern was heightened after an index that forecasts economic activity for China was revised lower.

While traders are seeing economic trouble wherever they look, Pang said he believes the market slide could be somewhat of an overreaction.

“The U.S. economy may not have bottomed out yet, but it has stabilized in the near term,” Pang said. “Maybe the U.S. markets are overreacting a little.”

Japan’s Nikkei 225 stock average shed 2 percent to close at 9,382.64 and Hong Kong’s Hang Seng dropped 0.6 percent to 20,128.99.

South Korea’s Kospi lost 0.6 percent, Australia’s S&P/ASX 200 retreated 1 percent, and Taiwan’s benchmark was down 1.3 percent.

In currencies, the dollar rose to 88.64 yen from 88.49 yen. The euro gained to $1.2216 from $1.2184 on Wednesday.

AP writer Pamela Sampson contributed to this report from Bangkok.