Global stock markets mixed after revised U.S. GDP

NEW YORK (Reuters) - U.S. stocks were down slightly on the last trading day of February as mixed economic data made investors cautious, while European shares broke multi-year records ahead of the European Central Bank’s planned injection of 60 billion euros to spur growth.

The FTSEurofirst 300 index of top European shares .FTEU3 closed up 0.38 percent on Friday after reaching its highest level since November, 2007. It has surged over 14 percent this year, its strongest start since benchmarks were created in 1986.

On Wall Street, the Dow Jones industrial average .DJI was down 30.50 points, or 0.17 percent, at 18,183.92. The Standard & Poor’s 500 Index .SPX was down 1.10 points, or 0.05 percent, at 2,109.64. The Nasdaq Composite Index .IXIC was down 15.52 points, or 0.31 percent, at 4,972.37.

U.S. gross domestic product expanded 2.2 percent in the fourth quarter, revised down from 2.6 percent estimated last month, the Commerce Department said. The number barely beat economists’ forecasts of 2.1 percent growth but slowed from a 5 percent rate in the third quarter.

However, pending home sales rose to their highest level in 1-1/2 years in January and the University of Michigan’s final February reading on consumer sentiment slipped from an 11-year high but topped expectations.

“You are sitting at highs and obviously some bit of good news at least is built into those highs and you need something else to get you over the hump,” said Bill Stone, chief investment strategist at PNC Wealth Management in Philadelphia.

The MSCI All-Country World equity index .MIWD00000PUS was down 0.02 percent, after rising almost 4 percent since year-end.

Investors in Europe have bought more higher-yielding assets, such as equities, as yields on core European government bonds have tumbled into or close to negative territory ahead of the ECB’s quantitative easing programme.

The ECB is expected to give details at its meeting next week on its Jan. 22 decision to embark on a securities-buying programme to fend off deflation and revive Europe’s economy.

Data on Friday from some pockets of the euro zone showed inflation prospects, though still subdued, may not be as bad as previously thought. That prompted yields on top-rated government bonds to bounce from record lows.

The dollar fell slightly but trimmed early losses against the euro and yen after the U.S. GDP number, which supported the view the world’s biggest economy will grow at a moderate pace.

The dollar index .DXY was still on track for its eighth straight month of gains against a basket of major currencies, which would be its longest streak of monthly gains since the currency’s link to gold was dropped in 1971.

U.S. Treasuries prices were mostly flat after the mixed U.S. economic data created uncertainty over the Federal Reserve’s timeline for hiking interest rates.

“We’re just back and forth,” said Ellis Phifer, market strategist at Raymond James in Memphis, Tennessee. “The data is extremely mixed at this point, so we’re looking for something to give us a little direction at this point about the economy.”

After settling down sharply on Thursday, crude oil futures rebounded. Brent LCOc1 was up 3.1 percent at $61.92 and U.S. crude CLc1 was up 2.1 percent at $49.20, with both headed for their first monthly gain since June 2014, helped by an improving demand outlook and supply outages. [O/R>

(Additional reporting by Emelia Sithole-Matarise in London and Chuck Mikolajczak in New York; Editing by Louise Ireland and Dan Grebler)

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