* Euro zone PMI data fails to fuel rally
* Europe shares, core bond yields tick up
* Asia shares fall despite India rate cut, China data (Updates prices, adds UK PMI, US futures)
By Lionel Laurent
LONDON, March 4 (Reuters) - Global equities pulled back from recent record highs on Wednesday, with investors turning cautious after underwhelming European PMI data and ahead of central bank meetings.
U.S. jobs data due on Friday was also on investors' minds, pushing the dollar index to an 11 1/2-year high, while the euro crashed through support levels that have held for more than a month. It hit a six-week low under pressure from the imminent launch of the European Central Bank's bond-buying programme.
The MSCI All Country World equity index slipped 0.3 percent, with Asian shares lower overall despite data showing a modest pick-up in China's services sector and a surprise rate cut in India that boosted bonds and the rupee.
U.S. equity futures were down 0.3 percent, set to extend a pullback since the Nasdaq began the week by hitting the 5,000 milestone for the first time since the peak of the dotcom bubble in March 2000.
European markets were flat overall - with equities and bond yields ticking up - after data showed price cutting and a weaker currency were the main drivers of an acceleration in euro zone business activity in February.
Markit's final composite purchasing managers' index (PMI) came in slightly weaker than a preliminary estimate although activity last month was at a seven-month high.
A below-expectations British services PMI saw sterling pull back from near seven-year-highs against the euro, and London's FTSE 100 share index was down 0.4 percent.
With major central banks at a crossroads as the ECB embarks on bond buying to further lower interest rates and spur growth, while the Federal Reserve is paving the way for a rate hike, investors are focused on data points that could give clues to the direction of future policy, especially the Fed's.
"Investors are turning a bit more cautious given the ECB (meeting) tomorrow (Thursday) as well as the U.S. payrolls (data) on Friday," said Saxo Bank trader Andrea Tueni.
"It's not a surprise to see a pause in the rally; stocks have been on fire since the start of the year, some people are cashing in a bit."
India's central bank was the latest to surprise markets with a rate cut, lowering its policy repo rate by 25 basis points to 7.5 percent on Wednesday. That was its second inter-meeting cut this year on the back of easing inflation and what it said was the "weak state" of parts of the economy.