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

* ADP data on U.S. private hiring below economists'

forecasts

* European shares close higher, except Greece

* U.S. Treasuries up on bets on slower move by Fed on rates

* Oil rallies after stock build data, as talks on Iran

continue

By Sinead Carew

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

straight day on Wednesday and the dollar dipped after

weaker-than-expected private sector employment data spurred

concerns that the keenly awaited monthly U.S. jobs report on

Friday could point to slowing economic growth.

Oil futures rallied as U.S. stock builds came in at a lower

level than feared and talks over Iran's nuclear program dragged

on, curbing expectations of an immediate deal that would allow

Iranian crude on to an already saturated 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.

Treasury debt prices were up on Wednesday, with yields on

the benchmark 10-year note slipping below 1.9 percent as

investors bet that the Federal Reserve may not raise rates until

the end of 2015.

"The market is bracing for the payrolls number on Friday,"

said Wilmer Stith, fixed-income portfolio manager at Wilmington

Trust in Baltimore. "We got a little disappointing ADP number.

Interest rates are lower worldwide, and all that's propelling

Treasury prices higher."

At 1:49 p.m.(1749 GMT) the Dow Jones industrial average

fell 57.72 points, or 0.32 percent, to 17,718.4, the S&P

500 lost 6.36 points, or 0.31 percent, to 2,061.53, and

the Nasdaq Composite dropped 25.68 points, or 0.52

percent, to 4,875.21.

Weaker-than-expected U.S. manufacturing data added to

concern about the upcoming quarterly earnings season, with the

decline in equities likely exacerbated because many traders are

away ahead of Friday's market holiday, said Andrew Frankel,

co-president of Stuart Frankel & Co in New York.

"You don't have people here saying, I'm going to stand up

with conviction. They'd rather wait until next week," he said.

The dollar was down 0.25 percent against a basket of

major currencies after falling as much as 0.38 percent. The soft

economic data reinforced the notion that the recent surge in the

greenback has hurt exporters and dragged on the economy, which

would worry Fed policymakers.

In commodities markets, Brent crude rose 3.8 percent

to $57.22 a barrel. U.S. crude was up 5 percent at

$49.97.

Government data showed crude inventories in the United

States rose by 4.8 million barrels to 471.4 million in the week

ending March 27. Some had feared a bigger rise after the

American Petroleum Institute, an industry group, suggested an

increase of as much as 5.2 million barrels on Tuesday.

Crude prices were also supported after Iran nuclear talks

missed a Tuesday deadline, relieving fears about an imminent

addition of supply to the market.

"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.

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

energy sector, making it one of the few sectors to show gains on

Wednesday.

After a decline on Tuesday, Europe's benchmark FTSEurofirst

300 recovered to finish up 0.3 percent. London's FTSE

rose 0.5 percent, Germany's DAX rose 0.3

percent and France's CAC closed up 0.6 percent after

euro zone manufacturing data was revised higher.

Equities in Greece, however, fell after Greece failed on

Tuesday to reach an initial deal on reforms with its lenders.

The Athex General Composite Share Price index finished

down 1.3 percent.

(Additional reporting by Michael Connor in New York; Editing by

Bernadette Baum and Leslie Adler)