US markets clawed their way higher overnight despite a mix bag of economic reports.

Stocks opened lower after ADP data revealed private sector job growth in May missed expectations.

However those early losses were followed by a swift turnaround that saw the S&P500 claim a new record high.

The recovery was fuelled by the ISM non-manufacturing PMI, which revealed services activity in May climbed at the fastest rate since September 2013.

Caution was the theme in Europe, with markets recording only minor moves in either direction as traders look to tonight's ECB meeting for an announcement on fresh stimulus.

Commodity market action was lacklustre, with gold inching lower and oil flat even though data revealed US crude inventories fell by more than expected last week.

There was finally some cheer for iron ore, which jumped more than two percent as this week's Chinese manufacturing numbers raise hopes for a recovery in the nation's factory output.

In currency markets, the US dollar was pressured by the weak ADP jobs read, which dented hopes for a blockbuster non-farm payrolls result this Friday night.

The greenback did manage a gain versus the euro, as traders bet the shared currency will face further declines once the ECB injects new stimulus into the eurozone.

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