GLOBAL MARKETS-Stocks recoup early losses, oil not so lucky

                                
   * Global stock markets recover after weak U.S. jobs data
                                
 * U.S. unemployment rate hits 10.2 percent, above forecast
                                
 * Crude oil prices falls on expected decline in demand
                                
 * Yen rises against dollar and euro
 (Recasts, adds comments, updates prices, changes byline,
dateline, previous LONDON)
                                
 By Daniel Bases
                                
 NEW YORK, Nov 6 (Reuters) - Global equity markets rebounded
on Friday from the initial scare brought on by a grim U.S. jobs
report after investors decided the data were not so bad.
                                
 However, the U.S. dollar and oil prices didn't benefit from
this shift in market sentiment.
                                
 While U.S. President Barack Obama called the data
"sobering", the increase in the unemployment rate to a
higher-than-expected 10.2 percent, a 26-1/2-year peak, was
later discounted after the number of jobs reported lost in
August and September were revised down. For more see
[ID:nN06178752].
                                
 U.S. employers cut 190,000 jobs last month. Economists
polled ahead of the data had expected 175,000 job cuts and an
unemployment rate of 9.9 percent.
                                
 The Japanese yen rose against both the greenback <JPY=> and
the euro <EURJPY=>. The U.S. dollar was unchanged against a
basket of currencies made up of its major trading partners
<.DXY>.
                                
 "The real shocker is the unemployment rate," said Joseph
Trevisani, senior market analyst at FX Solutions in Saddle
River, New Jersey. "The Fed will stay on hold even longer with
less likelihood of giving a concrete answer as to when and how
to withdraw quantitative easing."
                                
 Recently the weak global economic environment has led
investors to buy U.S. dollars for safety. However Friday's data
fueled the argument that the Federal Reserve -- the U.S.
central bank -- will maintain near-zero benchmark interest
rates in order to facilitate cheap borrowing and investment.
                                
 HELPING HANDS
                                
 Helping to overshadow the jobs report were two analyst
upgrades on shares of U.S. conglomerate General Electric
<GE.N>, a bellwether for U.S. economic activity. This helped
take some of the sting out of the stock market's initial fall
on the jobs report. GE's share price surged 7 percent to
$15.44. [ID:nN06538139]
                                
 "The headline (U.S.) numbers look terrible, but for traders
and investors looking for trends, a closer look at the report
shows that there is a trend of slowed job losses," said Randy
Frederick, director of trading and derivatives at Charles
Schwab & Co, Inc in Austin, Texas.
                                
 European share prices also managed to turn higher, with
bank stocks leading the way. Part-nationalized Royal Bank of
Scotland <RBS.L> gained 5.3 percent after it said it more than
halved third-quarter losses as impairments fell.
[ID:nL6671701]
                                
 At 1 p.m. (1800 GMT), the major U.S. stock indexes were all
higher. The Dow Jones industrial average <.DJI> was up 24.64
points, or 0.25 percent, at 10,030.60. The Standard & Poor's
500 Index <.SPX> rose 3.04 points, or 0.29 percent, at
1,069.67. The Nasdaq Composite Index <.IXIC> gained 6.56
points, or 0.31 percent, at 2,111.88.
                                
 The MSCI world equity index <.MIWD00000PUS> rose 0.36
percent while the emerging markets index <.MSCIEF> gained 0.75
percent.
                                
 European stocks recovered early losses as the FTSEurofirst
300 index <.FTEU3> gained 0.2 percent, up 1.6 percent for the
week. Tokyo's benchmark Nikkei <.N225> rose 0.74 percent to
9,789.35 on Friday after marking a one-month closing low on
Thursday. The Nikkei lost 2.44 percent for the week.
                                
  Crude <CLc1> fell below $78 per barrel on prospects the
U.S. jobs data means energy demands will decline. U.S. light
sweet crude oil fell $2.62, or 3.29 percent, to $77.00.
                                
 Spot gold broke through the $1,100-an-ounce barrier,
touching a record $1,100.90 before retreating to $1,094.10,
still up $3.55 or 0.33 percent on the day <XAU=>.
                                
 Benchmark 10-year U.S. Treasury <US10YT=RR> prices rose
1/32 of a point in price to yield 3.52 percent.
                                
 In euro zone government bonds, the two-year Schatz
<EU2YT=RR> paper outperformed with yields down 4 basis points
at 1.28 percent, while 10-year Bund yields <EU10YT=RR> were up
1.9 basis points at 3.36 percent.
 (Additional reporting by Angela Moon and Gene Ramos in New
York; Lucia Mutikani in Washington and Simon Falush, Joanne
Frearson, George Matlock, and Jessica Mortimer in London)