US report positive employment data, other data mixed

Economic data on Wednesday were mixed.

In the US, employment data were positive. ADP reported that private sector employment increased by 188,000 in June, up from the 134,000 gain in May while the Labor Department reported that initial claims for state unemployment benefits fell 5,000 to 343,000 last week.

However, other reports on Wednesday showed possible signs of weakness in the US economy. A report from the Commerce Department showed that exports fell 0.3 percent in May, resulting in a wider trade deficit. The Institute for Supply Management's services index fell to 52.2 in June, the lowest level since February 2010, from 53.7 in May.

In China, data showed that services sector activity expanded in June but failed to allay concerns of a slowing economy. The services PMI published by the National Bureau of Statistics fell to a 9-month low of 53.9 in June from 54.3 in May. The Markit/HSBC services PMI edged up to 51.3 in June from 51.2 in May but the new orders index fell to 50.5 in June, the lowest since November 2008.

In the euro area, services sector activity contracted again in June but at a slower rate. Markit's services PMI rose to 48.3 last month from 47.2 in May. That helped push the composite index up to 48.7 from 47.7.

Also encouragingly, retail sales in the euro zone rose 1.0 percent in May, its first increase in four months.

Meanwhile, the UK continued to report robust economic data on Wednesday. The services PMI jumped to 56.9 in June from 54.9 in May. Other data on Wednesday showed that lenders see a further significant rise in mortgage demand in the next three months while a British Retail Consortium survey suggested a major easing in price pressures.