(Updates to open of U.S. markets, changes dateline; previous
LONDON/SINGAPORE)
* World shares poised for worst week in more than two months
* Dollar heads for its best week since April
* 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 was on pace for its
worst week in more than two months, while the dollar continued
to climb in the wake of the U.S. payrolls report.
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 the climb of 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 is a pretty healthy addition of jobs," said JJ Kinahan,
chief market strategist at TD Ameritrade in Chicago.
Kinahan said that while the report shows improvement, many
areas of the labor market continue to suffer. "So yes it is
great progress but it also shows we still have a long way to
go."
The Dow Jones Industrial Average .DJI rose 210.87 points,
or 0.75%, to 28,503.6, the S&P 500 .SPX gained 7.35 points, or
0.21%, to 3,462.41 and the Nasdaq Composite .IXIC dropped
56.64 points, or 0.49%, to 11,401.46.
The three major Wall Street indexes saw their biggest drop
since June on Thursday, led by a sell-off in technology
.SPLRCT shares.
The pan-European STOXX 600 index .STOXX advanced in a
choppy session following the U.S. payrolls report. Stocks had
initially rebounded from their worst day in more than a month on
gains in bank shares before losing steam to trade flat before
the data. The pan-European STOXX 600 index .STOXX rose 0.19% and
MSCI's gauge of stocks across the globe .MIWD00000PUS shed
0.20%. The MSCI index was on track for its worst week since late
June.
The U.S. dollar continued to recover from two-year lows hit
earlier in the week and was poised for its best week since late
April while the euro continued its decline after breaching the
$1.20 mark on Tuesday. The dollar index =USD rose 0.29%, with the euro EUR=
down 0.41% to $1.1801.
U.S. Treasury yields jumped on the heels of the jobs report.
Benchmark 10-year notes US10YT=RR last fell 20/32 in price
to yield 0.6853%, 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 recently fell 0.85% to $41.02 per barrel
and Brent LCOc1 was at $43.72, down 0.79% 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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