Global stocks and oil prices rebounded on Wednesday after reassuring US economic data and hopeful signs authorities are moving forward to contain the latest outbreak in Europe's debt crisis. Wall Street traded near break-even after opening lower as a better-than-expected report on the US services sector helped offset lingering doubts the debt crisis is over and concerns that data in Europe suggested the region is sliding into recession. European stocks gained 2%, pushed higher by banking shares, and Brent crude bounced back above USD 101 a barrel on news that European finance ministers are exploring ways to recapitalize the ailing sector. European shares rose after tumbling nearly 5% the past three sessions. The benchmark S&P 500 index in the United States had fallen 10% over the past six sessions. The FTSEurofirst 300 index of top European shares was up 2.4% at 909.45 points. MSCI's all-country world index rose 0.8% to 274.24. Brent crude rose USD 1.80 to USD 101.59 a barrel, while US crude was up USD 2.03 at USD 77.70 a barrel. Surveys that showed private sector business activity shrank in the euro zone for the first time in two years last month as new orders dried up kept enthusiasm among many investors in check. "I'm not sure this is the end of the bear trend, this is a short term bounce. But until there is actual doing as well as comments, we won't see a sustainable recovery," said Andy Sommer, an analyst at EGL in Dietikon, Switzerland. The Dow Jones industrial average was up 9.35 points, or 0.09%, at 10,818.06. The Standard & Poor's 500 Index was up 2.11 points, or 0.19%, at 1,126.06. The Nasdaq Composite Index was up 2.38 points, or 0.10%, at 2,407.20. The Institute for Supply Management said its services index dipped to 53.0 last month from 53.3 in August but employment in the vast US services sector fell in September to its lowest level since April 2010. "Beneath the surface, it's actually a fairly mixed report," said Tom Porcelli, chief economist at RBC Capital Markets in New York. "New orders index improved -- it's the best we've seen since the middle of the year -- but the employment index slipped below breakeven." The euro fell, weighed by a lack of concrete details to deal with the region's debt crisis and worries over a Greek default even after a pledge by policymakers to strengthen European banks. A downgrade of Italian sovereign debt by ratings agency Moody's highlighted the funding difficulties facing the euro zone's third biggest economy, while France and Belgium were forced to help Dexia SA in the first state rescue of a European bank in the crisis. The euro rallied to trade little changed against the dollar after better-than-expected US private-sector jobs data boosted risk appetite but that advance proved fleeting. "Slightly better employment data would signal risk preference but a lack of progress in any meaningful way on resolving Greece and the debt crisis in general is keeping risk at bay," said John McCarthy, director of foreign exchange at ING Capital Markets in New York. "A downgrade of Italy has brought everyone back to reality." The euro was down 0.1% at USD 1.3332. The US dollar index of major trading currencies fell 0.7% to 79.053. The prices of US Treasury securities fell, with yields nearing session highs after the report on US private sector jobs showed more job growth than expected in September. Benchmark 10-year Treasury notes were down 20/32 in price to yield 1.88%.

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