* U.S. jobs data disappoints
* Wall Street stocks see nominal gains
* The dollar edges lower
* Crude prices drop, still on track for weekly gain
* Remarks from Fed chair Jerome Powell eyed
(Updates to U.S. market open, changes dateline (previously
LONDON), changes byline)
By Stephen Culp
NEW YORK, Sept 6 (Reuters) - Wall Street eked out gains on
Friday and the dollar lost ground as a weaker-than-expected U.S.
jobs report tempered investor sentiment on the heels of China's
announced economic stimulus plan.
The week began with a flight to safety driven by trade
jitters and weak U.S. manufacturing data, but positive
geopolitical developments in Britain, Hong Kong and Italy, along
with news that U.S.-China trade talks would continue, put market
participants in a risk-on mood.
That mood was given a further boost after China's central
bank said it would lower the amount of cash that banks must hold
as reserves, resulting in additional liquidity to the tune of
900 billion yuan ($126.35 billion) in an effort to fortify the
nation's ebbing economy. But risk appetite was curbed after the U.S. non-farm
payrolls report showed an increase of 130,000 jobs in August,
fewer than analysts expected. The underwhelming data provided another possible sign that
longest-ever period of U.S. economic expansion is losing steam
and increased the likelihood that the Federal Reserve will cut
interest rates when it meets later this month.
"It was a generally weak report," said Bill Merz, head of
fixed income research at U.S. Bank Wealth Management in
Minneapolis. "The U.S. labor market has been the last line of
defense amid softening global economic data and we can't read
too much into any single report, but this is one more piece of
evidence that the Fed is behind the curve."
"Wage gains and hours worked were a silver lining," Merz
added. "But that hasn't led to higher inflation or inflation
expectations yet, which is what the market really needs to see."
Market participants now look to remarks by Jerome Powell, as
the Fed chair takes part in a panel about the economy and
monetary policy in Zurich, which begins at 12:30 p.m. EDT (1630
GMT).
The Dow Jones Industrial Average .DJI rose 62.75 points,
or 0.23%, to 26,790.9, the S&P 500 .SPX gained 5.37 points, or
0.18%, to 2,981.37 and the Nasdaq Composite .IXIC added 4.58
points, or 0.06%, to 8,121.41.
News of China's economic stimulus sent European and emerging
markets stocks higher.
The pan-European STOXX 600 index .STOXX rose 0.19% and
MSCI's gauge of stocks across the globe .MIWD00000PUS gained
0.28%.
Emerging market stocks rose 0.54%. MSCI's broadest index of
Asia-Pacific shares outside Japan .MIAPJ0000PUS closed 0.65%
higher, while Japan's Nikkei .N225 rose 0.54%.
U.S. Treasury yields dropped on the weak payrolls report,
but strong wage gains cushioned the fall. Benchmark 10-year note US10YT=RR prices and yields were
essentially flat.
The 30-year bond US30YT=RR last rose 10/32 in price to
yield 2.0406%, from 2.054% late on Thursday.
The dollar turned lower against a basket of currencies
following the U.S. jobs report and ahead of Powell's remarks.
The dollar index .DXY fell 0.15%, with the euro EUR= up
0.1% to $1.1044.
The Japanese yen strengthened 0.13% versus the greenback at
106.83 per dollar, while sterling GBP= was last trading at
$1.2315, down 0.11% on the day.
Oil prices dropped following the jobs report, but remained
on track for a weekly gain on rising hopes for a resolution in
the U.S.-China trade war. U.S. crude CLcv1 fell 1.92% to $55.22 per barrel and Brent
LCOcv1 was last at $60.03, down 1.51% on the day.
Gold inched higher on the heels of weaker-than-expected
labor market data.
Spot gold XAU= added 0.1% to $1,521.01 an ounce.
Copper CMCU3 lost 0.27% to $5,829.00 a tonne.
Three-month aluminum on the London Metal Exchange CMAL3
rose 0.17% to $1,787.00 a tonne.