US Treasuries extended losses as investors booked profits from a recent rally that pushed yields on two-year notes to record lows on Tuesday.

Investors took heart after data showed US private employers added 42,000 jobs in July, compared with a revised gain of 19,000 in June, according to payrolls processor ADP Employer Services.

The vast service sectors in the United States and euro zone both grew last month, reports showed, easing some worries about a severe slowdown in the global economic recovery.

MSCI’s all-country world index pared losses to trade near break-even.

“The data was better than expected, and the market likes that, but ‘blah’ is the best way still to define this recovery,” said Peter Boockvar, equity strategist at Miller Tabak & Co in New York.

The European data held a mixed message, however. Fears of a double dip recession were allayed after the euro zone’s dominant service sector picked up speed in July, but strong growth in Germany and France masked weakness in southern Europe.

European equities ended slightly higher on news of the US economic data but German Bunds were up on the day, supported by broader worries about a faltering global economic recovery.

“Markets are struggling to understand what’s happening and whether to put emphasis on the good part of the news or on the bad part, and this explains the nervousness,” said Philippe Gijsels, head of research at BNP Paribas Fortis Global Markets in Brussels.

The FTSEurofirst 300 index of top European shares closed 0.2 percent higher at 1,071.02 points.

On Wall Street, the Dow Jones industrial average was up 54.04 points, or 0.51 percent, at 10,690.42. The Standard & Poor’s 500 Index was up 6.04 points, or 0.54 percent, at 1,126.50. The Nasdaq Composite Index was up 17.71 points, or 0.78 percent, at 2,301.23.

The dollar rebounded from an eight-month low against the yen and rose against the euro as the US data prompted traders to unwind bets against the US currency.

“It’s obvious the pace of US growth is slowing and people are waiting to sell the dollar at better levels,” said Hidetoshi Yanagihara, senior currency trader at Mizuho Corporate Bank in New York.

The dollar was up against a basket of major currencies, with the US Dollar Index up 0.47 percent at 80.972.

The euro was down 0.50 percent at $1.316 and against the Japanese yen, the dollar was up 0.64 percent at 86.33.

US Treasury debt prices fell. The benchmark 10-year US Treasury note was down 10/32 in price to yield 2.9426 percent. The 2-year US Treasury note was down 2/32 in price to yield 0.57 percent.

Benchmark US crude oil prices rose a touch after earlier declines, responding to official figures showing a higher than expected fall in crude stocks.

The optimism was, however, tempered by a rise in gasoline and distillate inventories.

US light sweet crude oil rose 21 cents to $82.76 a barrel.

Spot gold prices rose $14.45 to $1,199.10 an ounce.

Earlier in Asia, Tokyo stocks fell 2.1 percent, while the MSCI Asia-Pacific index that excludes Japan was down 0.1 percent.

Fears that a strong yen would erode exporters’ profits and sap economic growth boosted Japanese government bonds, pushing the 10-year yield below 1 percent for the first time in seven years.