New York, Apr 04: Global stock markets paused after investors locked in gains fuelled by the steady advance of US troops on Baghdad, awaiting news on what could be the final stage of the Iraq war. The dollar held firm while oil prices climbed higher.

In New York, the Dow Jones industrials yesterday fell 44.68 points (0.54 percent) to 8,240.38. The Standard and Poor's 500 slipped 4.45 points (0.51 percent) to 876.45 and the Nasdaq composite lost a fractional 0.14 point to 1,396.58. Dealers said disappointing figures for weekly jobless claims and data showing the services sector has contracted for the first time in over a year rekindled concerns about the state of the US economy.

But Larry Wachtel at prudential said the pullback was modest after a strong two-day rally, and that the trend appeared to be higher. "Thus far, Wall Street has been able to live with sign of a sluggish economy on the premise that most of it is war-related, and resolution of Iraq will allow the economy to spring back," he said.

Bureau Report