* Wall Street slips on unexpected job losses
* Euro extends gains against dollar on quarter-end buying
* Moody's downgrades of Greek banks also hit stocks
(Updates with U.S. markets; adds NEW YORK dateline, byline)
By Jennifer Ablan and Dominic Lau
NEW YORK/LONDON, March 31 (Reuters) - U.S. stocks slipped
in early trading on Wednesday following a private report
showing American employers unexpectedly cut jobs in March while
the euro extended gains against the dollar on quarter-end
buying.
Treasuries benefited from the selling pressure in stocks.
U.S. companies cut an estimated 23,000 jobs this month, ADP
Employer Services reported, compared with a median economist
forecast for an increase of 40,000. The report sparked renewed
worries about the outlook for the labor market ahead of
Friday's release of U.S. government data on March payrolls.
At 10:15 a.m. (1415 GMT), the benchmark 10-year U.S.
Treasury note <US10YT=RR> was up 9/32 in price, with the yield
at 3.82 percent, while the 2-year U.S. Treasury note <US2YT=RR>
was up 2/32, with the yield at 1.03 percent. The 30-year U.S.
Treasury bond <US30YT=RR> was up 12/32 to yield 4.72 percent.
The Dow Jones industrial average <> was down 51.92
points, or 0.48 percent, at 10,855.50, while the benchmark
Standard & Poor's 500 Index <.SPX> was down 4.86 points, or
0.41 percent, at 1,168.41. The Nasdaq Composite Index <>
was down 7.42 points, or 0.31 percent, at 2,403.27.
Equities were also lower after Moody's Investors Service
downgraded its rating on five Greek banks, citing weakened
financial strength and pressures from the country's fiscal
challenges. For details click on [].
The agency also maintained a negative outlook on the
ratings of the five banks -- National Bank of Greece <NBGr.AT>,
EFG Eurobank Ergasias <EFGr.AT>, Alpha Bank <ACBr.AT>, Piraeus
Bank <BOPr.AT> and Emporiki Bank <CBGr.AT>.
The MSCI world equity index <.MIWD00000PUS> was
essentially flat at 0.01 percent at 307.53, while the
FTSEurofirst 300 index <> was down 0.4 percent and
emerging stocks <.MSCIEF> were up at 0.02 percent.
EURO UP ON QUARTER-END BUYING
Even so, the euro saw quarter-end buying despite the
ratings news from Greece.
The euro <EUR=> was up 0.79 percent at $1.3516 from a
previous session close of $1.3410. The euro zone common
currency extended gains against the dollar to session peaks
above $1.35, boosted largely by quarter-end buying.
That said, traders warned euro zone fiscal worries are
likely to limit further gains.
"We could see a move higher from here, with a possible move
up to recent highs around $1.3540-50, but whether that can be
sustained ... is questionable as news out of Europe is still
pretty bad," said Brian Dolan, chief currency strategist at
Forex.com in Bedminster, New Jersey.
Against the Japanese yen, the dollar <JPY=> was up 0.65
percent at 93.04 yen from a previous session close of 92.440.
The dollar was down against a basket of major
trading-partner currencies, with the U.S. Dollar Index <.DXY>
down 0.55 percent at 81.023 from a previous session close of
81.470.
In energy and commodities prices, U.S. light sweet crude
oil <CLc1> rose 35 cents, or 0.42 percent, to $82.72 per
barrel, and spot gold <XAU=> rose $12.40, or 1.12 percent, to
$1,115.00 an ounce, while the Reuters/Jefferies CRB Index
<.CRB> was up 0.53 percent at 272.26.
(Additional reporting by Steven C. Johnson in New York;
Editing by James Dalgleish)
