GLOBAL MARKETS-Stocks, dollar, oil fall on US jobs data

                                
   * Stocks, dollar, crude oil fall on weak U.S. jobs data
                                
 * Recovery doubts grow on deeper-than-expected job losses
                                
 * U.S. government debt flat as profit-taking offsets data
                                
 (Updates with U.S. markets activity, changes dateline;
previous LONDON)
                                
 By Herbert Lash
                                
 NEW YORK, Oct 2 (Reuters) - Global stocks, crude oil and
the U.S. dollar fell on Friday after deeper-than-expected U.S.
job losses reinforced worries a soft American labor market
could slow the pace of economic recovery.
                                
 A slide in U.S. stocks was partially offset by positive
broker comments on companies in the tech and financial sectors.
U.S. Treasury prices were little changed as profit-taking was
tempered by the acceleration in U.S. job losses. For details,
see: [ID:nN02321933][ID:nN02323647]
                                
 Oil prices slid more than 2 percent to near $69 a barrel
and copper prices hit a two-month low as the anemic September
jobs data eroded confidence in consumer demand prospects.
[ID:nNSIN305143] [ID:nL2116792]
                                
 The dollar dropped against major currencies. Gold erased
initial losses to rise above $1,000 an ounce, reflecting a
spike and subsequent retreat in the dollar as investors fretted
over the disappointing Labor Department payrolls report.
[ID:nL2498069]
                                
 U.S. employers cut 263,000 jobs, helping to lift the U.S.
unemployment rate to a 26-year high of 9.8 percent from 9.7
percent in August. Economists surveyed by Reuters had expected
a drop of 180,000.
                                
 The MSCI all-country world index <.MIWD00000PUS> fell about
1.1 percent, while pan-European and shares in Asia outside of
Japan fell almost 2 percent.
                                
 "The number is going to put a real crimp on anticipation of
a strong recovery," said Joseph Trevisani, senior market
analyst at FX Solutions in Saddle River, New Jersey. "The
number of job losses is moving in the wrong direction."
                                
 Partially offsetting the jobs gloom were U.S. tech shares,
boosted by a UBS upgrade on Apple Inc <AAPL.O> to "buy" from
"neutral" and a 56 percent increase in its price target on the
stock. Apple shares rose 2.5 percent. [ID:nBNG462210]
                                
 Shortly after 1 p.m., the Dow Jones industrial average
<.DJI> was down 6.27 points, or 0.07 percent, at 9,503.01. The
Standard & Poor's 500 Index <.SPX> was down 1.96 points, or
0.19 percent, at 1,027.89. The Nasdaq Composite Index <.IXIC>
was down 0.45 points, or 0.02 percent, at 2,057.03.
                                
 European shares hit a four-week closing low, and euro zone
government bond prices rose sharply after the U.S. job losses
added to concerns about the strength of economic recovery.
[ID:nL2298876]
                                
 December Bund futures <FGBLZ9> hit 122.97, their highest
level since the contract rolled.
                                
 The FTSEurofirst 300 <.FTEU3> index of top European shares
fell 1.85 percent to close at 963.56 points.
                                
 Every sector in the DJ Stoxx 600 <.STOXX> was in the red,
but banks <.SX7P> were among the top losers. Banking shares
have rallied more than 150 percent since March lows.
                                
 "We've all been expecting bouts of profit taking and I
think that's all it is. The economy can only deliver so much at
any one time. Maybe the employment expectations were a bit too
rich," said Mike Lenhoff, a strategist at Brewin Dolphin.
                                
 The benchmark 10-year U.S. Treasury note <US10YT=RR> was
down 3/32 in price to yield 3.19 percent.
                                
 Investors initially bought the dollar versus the euro after
the release of the jobs data in a flight-to-safety bid. But
dollar gains were modest and analysts suggested caution in
buying the U.S. currency amid signs the recovery could stall.
                                
 The dollar was down against a basket of major currencies,
with the U.S. Dollar Index <.DXY> down 0.21 percent at 77.024.
                                
 The euro <EUR=> was up 0.41 percent at $1.459. Against the
yen, the dollar <JPY=> was up 0.13 percent at 89.66.
                                
 U.S. crude futures <CLc1> fell as low as $68.32 a barrel,
before paring losses to trade down $1.63 cents at $69.20 a
barrel. London Brent crude <LCOc1> lost $1.83 to $67.36.
                                
 Spot gold prices <XAU=> rose $2.05 to $1000.50 an ounce.
                                
 Shares in Japan <.N225> skidded 2.5 percent with carmakers
including Toyota and Nissan hurt by a slump in September U.S.
car sales.
                                
 The MSCI index of Asia Pacific stocks traded outside Japan
<.MIAPJ0000PUS> fell 1.6 percent.
                                
 (Reporting by Ryan Vlastelica, Gertrude Chavez-Dreyfuss and
Richard Leong in New York; David Sheppard, George Matlock,
Brian Gorman, Pratima Desai and Maytaal Angel in London;
writing by Herbert Lash; Editing by Andrew Hay)