GLOBAL MARKETS-Wall St, dollar fall after private jobs data, oil up

* European shares push higher as Q2 gets under way

* U.S. stocks, U.S. dollar dips after weak private sector

job data

* Oil rallies as talks on Iran continue

By Sinead Carew

NEW YORK, April 1 (Reuters) - U.S. stocks fell for a second

day and the dollar dipped after a weaker-than-expected report on

private sector employment spurred investor concerns that a

highly anticipated monthly U.S. jobs report on Friday could also

point to slowing economic growth.

However, oil futures rallied as talks over Iran's nuclear

program continued, curbing expectations of an immediate deal

that would allow Iranian crude on to the market.

The ADP National Employment Report showed that U.S. private

employers added 189,000 jobs last month, well below economists'

expectations for 225,000 jobs. The report was the weakest since

January 2014.

The employment data also dragged down U.S. Treasuries yields

as investors bet that the Federal Reserve may not raise rates

until the end of 2015

"The correlation between ADP and the payroll report isn't

terribly strong, but given the size of the miss, this could

cause investors to pause and reassess the landscape," said David

Lebovitz, global market strategist for J.P. Morgan Asset

Management in New York.

At 11:22 a.m. EDT (1522 GMT), the Dow Jones industrial

average fell 76.6 points, or 0.43 percent, to 17,699.52,

the S&P 500 lost 7.47 points, or 0.36 percent, to

2,060.42 and the Nasdaq Composite dropped 25.44 points,

or 0.52 percent, to 4,875.45.

The rebound in oil prices helped boost the S&P 500 index's

energy sector, making it one of three sectors to show gains for

the benchmark index on Wednesday.

After a decline on Tuesday, Europe's benchmark FTSEurofirst

300 recovered and was up 0.45 percent. London's FTSE

was up 0.6 percent, Germany's DAX rose 0.3

percent and France's CAC was up 0.71 percent after euro

zone manufacturing data was revised higher.

Euro zone bonds remained in favor as the European Central

Bank pushed on with its 1 trillion euro buying plan, while oil

was under pressure amid hopes of an Iran nuclear

deal that is expected to loosen sanctions on the OPEC member.

Data from China was less robust, bolstering a view that

Beijing has to provide more stimulus to keep growth on track,

with some analysts eyeing moves to directly push down the yuan's

value.

The HSBC/Markit China Manufacturing Purchasing Managers'

Index (PMI) came in at 49.6, slightly higher than a preliminary

"flash" reading of 49.2, but still below the 50-mark separating

contraction from expansion.

An employment subindex contracted for a 17th straight month,

falling to its lowest since August 2014.

Japan's Nikkei sank 0.9 percent after a lacklustre Bank of

Japan business survey.

After Greece failed on Tuesday to reach an initial deal on

reforms with its lenders, the Athex General Composite Share

Price index was down 1.3 percent.

The Iran nuclear talks pushed Brent crude up 2.9

percent to $56.71 a barrel while U.S. crude was up 3.4

percent at $49.19.

"A lot of people were expecting the deal to be done

overnight and Iran to be pumping a million barrels tomorrow.

That's not going to be the case," said Amrita Sen, chief oil

analyst at Energy Aspects.

(Additional reporting by Ryan Vlastelica in New York and

Mimanshu Ojha in London; Editing by Tom Heneghan and Bernadette

Baum)