(Updates with close of U.S. markets, oil settlement prices)
* World shares suffer worst week in nearly three months
* Dollar snaps three-day run of gains
* U.S. job growth slows in August
By Chuck Mikolajczak
NEW YORK, Sept 4 (Reuters) - A gauge of global stocks fell
for a second straight day on Friday and marked its biggest
weekly percentage drop in nearly three months, while the dollar
ran out of steam, ending a three-day run higher, after a U.S.
payrolls report painted a weaker economic picture.
U.S. job growth slowed in August as financial aid from the
government was depleted, with nonfarm payrolls increasing by
1.371 million jobs versus 1.734 million in the prior month.
Expectations were for the addition of 1.4 million jobs. The
unemployment rate fell to 8.4% from 10.2%. "It points in the right direction, but still leaves some
question marks as 8.4% of unemployment is still a high rate,"
said Peter Cardillo, chief market economist at Spartan Capital
Securities in New York. "They certainly point to recovery, but
yet a weak recovery."
On Wall Street, stocks remained under pressure for a second
consecutive session, as technology shares again played an
outsized role. The tech sector .SPLRCT dropped 1.34% and
suffered its biggest two-day percentage drop in almost six
months.
The Dow Jones Industrial Average .DJI fell 159.42 points,
or 0.56%, to 28,133.31, the S&P 500 .SPX lost 28.13 points, or
0.81%, to 3,426.93, and the Nasdaq Composite .IXIC dropped
144.97 points, or 1.27%, to 11,313.13.
U.S. markets are closed on Monday for the Labor Day holiday.
The pan-European STOXX 600 index .STOXX lost 1.13% to
close down 2.03% on the week. MSCI's gauge of stocks across the
globe .MIWD00000PUS shed 0.95% to end the week and give the
index its biggest weekly percentage drop since mid-June.
The U.S. dollar gave back initial gains following the jobs
report and turned lower late in the session to snap a three-day
run of gains off of two-year lows. The euro edged lower to
continue its decline after breaching the $1.20 mark on Tuesday.
The dollar index =USD fell 0.047%, with the euro EUR=
down 0.08% to $1.1839.
U.S. Treasury yields climbed on the heels of the jobs
report. Benchmark 10-year notes US10YT=RR last fell 29/32 in price
to yield 0.7148%, from 0.622% late on Thursday.
Oil prices continued to weaken on demand concerns and were
on track for their worst week since mid-June. U.S. crude CLc1 settled down 3.87% at $39.77 per barrel
and Brent LCOc1 was at $42.66, down 3.2%, on the day.
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Spain bank index https://tmsnrt.rs/353RIQR
Jobs fell off a cliff https://tmsnrt.rs/2YXduSq
U.S. unemployment jpg https://reut.rs/2X245ch
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