GLOBAL MARKETS-Stocks rally, and yields, dollar fall; data fans rate cut talk

* Major U.S. stock indexes up more than 1%
* S&P 500 on track for biggest weekly pct gain since Nov
* Dollar drops following Labor Department report
* Oil prices rise

(Updates with European stocks close, gold price rally)
By Caroline Valetkevitch
NEW YORK, June 7 (Reuters) - Major world stock indexes
jumped and U.S. Treasury yields tumbled on Friday after a
slowdown in U.S. job growth fueled hopes of a U.S. interest rate
cut, while Washington's move to delay tariffs on Chinese goods
added to equity market optimism.
The U.S. dollar index also dropped and gold prices rallied
to their highest levels since April 2018 following the U.S.
Labor Department's monthly report, which also showed wages rose
less than expected in May. Yields on 10-year
Treasury notes hit their lowest since September 2017.
The jobs data suggested the loss of momentum in economic
activity was spreading to the labor market, which could put
pressure on the Federal Reserve to cut rates this year.
On Wall Street, the benchmark S&P 500 index was more than 1%
higher in afternoon trading and on track for its biggest weekly
percentage gain since November 2018.
"This is the type of read the doves will really take to, as
it supports the argument for cutting rates beyond politics or
trade issues, which were never part of the Fed's mandate to
begin with," said Mike Loewengart, vice-president of investment
strategy at E*Trade Financial in New York.
Hopes that the Fed would turn more accommodative to blunt
the impact of escalating trade tensions have helped support
stocks in recent days. The U.S. government on Friday said it was granting Chinese
exporters two more weeks to get their products into the United
States before increasing tariffs on those items. U.S. President Donald Trump said there was a "good chance"
the United States would make a trade deal with Mexico.
The Dow Jones Industrial Average .DJI rose 290.73 points,
or 1.13%, to 26,011.39, the S&P 500 .SPX gained 34.65 points,
or 1.22%, to 2,878.14 and the Nasdaq Composite .IXIC added
135.72 points, or 1.78%, to 7,751.27.
The pan-European STOXX 600 index .STOXX rose 0.93% and
MSCI's gauge of stocks across the globe .MIWD00000PUS gained
1.10%.
In U.S. Treasuries, benchmark 10-year notes US10YT=RR last
rose 12/32 in price to yield 2.0827%. The yield touched 2.053%
shortly after the May payrolls report, which was its lowest
since September 2017. With trade tensions between the United States and its
trading partners still brewing, investors have been assessing
how global central banks will respond to signs of a downturn.
Traders now are betting on multiple rate cuts by the Fed
over the next 12 months.
But a cut is not guaranteed. And the potential for central
banks to disappoint markets was highlighted on Thursday, when
the European Central Bank declined to hint it would cut rates
soon. The dollar index .DXY fell 0.51%, with the euro EUR= up
0.56% to $1.1337.
In the oil market, crude prices gained amid signs that OPEC
and other producers could extend their output reduction deal.
Gold prices jumped to their highest levels since April 2018
as the jobs report sent the dollar lower. Spot gold XAU= was
0.6% higher to $1,343.07 per ounce, having earlier hit its
intra-day high of $1,348.08. U.S. crude CLcv1 rose 1.81% to $53.54 per barrel.
For Reuters Live Markets blog on European and UK stock
markets, please click on: LIVE/

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World FX rates in 2019 http://tmsnrt.rs/2egbfVh
MSCI All Country Wolrd Index Market Cap http://tmsnrt.rs/2EmTD6j
Emerging markets in 2019 http://tmsnrt.rs/2ihRugV
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