In London, the British government said it would help families and small businesses survive an impending downturn. But it made no mention of measures to force banks to lend more as it laid out a policy agenda for a difficult year ahead.

U.S. stock futures were indicating losses at the market open after data showed U.S. private employers shed the most jobs in seven years in November. ADP Employer Services said a greater-than-expected 250,000 jobs were lost in the month.

The U.S. Labor Department will release the government’s broader November jobs report on Friday.

U.S. Treasury Secretary Henry Paulson was reported to be considering if he should ask lawmakers in Washington for the second half of a US$700 billion bank rescue package after the United States was officially declared to be in recession.

Pressure for big rate cuts in Europe and Britain grew with surveys showing the euro zone and UK service sectors fell deeper into recession in November than first thought. The U.S. Institute of Supply Managers is expected to report on the American service sector later Wednesday.

While Asian stocks rebounded from recent sell-offs, European shares weakened following the services report.

The Bank of Thailand slashed its main interest rate for the first time in 16 months to help an economy hit both by the global crisis and political unrest, cutting 100 basis points to 2.75 percent. Australia cut rates on Tuesday and the euro zone, Britain, Sweden and New Zealand all make decisions on Thursday.

The Markit Eurozone Purchasing Managers Index for services companies, which covers banks to bars in the euro zone, plunged to 42.5 in November from October’s 45.8 level, the lowest in the survey’s 10-year history.

It also showed inflationary pressures eased, making it easier for the European Central Bank to cut rates sharply.

“There is ample room for the ECB to cut rates ... We think 75 basis points will be the compromise, but we would not rule out a cut by 100 basis points,” said Juergen Michels at Citi.

The equivalent survey for Britain showed its dominant services sector shrank in November at its fastest pace since the series began in 1996, boosting expectations the Bank of England will slash interest rates by a full point on Thursday.

The Federal Reserve, which is also expected to cut U.S. rates again later this month, will release its closely-watched Beige Book of economic conditions later in the day.

The Wall Street Journal reported U.S. Treasury Secretary Paulson might approach Congress next week to ask for the second half of a US$700 billion bank rescue package.

Paulson was on his way to Beijing to talk to Chinese officials. But he may not receive big promises of further investment, especially from China’s sovereign wealth fund, which expressed a lack of confidence in the U.S. regulatory situation.

The chairman of China Investment Corp. said the sovereign wealth fund was “not brave enough” to invest in foreign financial firms and lacked confidence in the shifting U.S. financial regulatory terrain.

“It’s changing every week. How can I be confident?,” CIC chairman Lou Jiwei said in Hong Kong.

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