* Stocks, US dollar, crude oil slide on weak U.S. jobs data
* Recovery doubts grow on deeper-than-expected job losses
* Bonds brush off dismal payrolls, slide ahead of auctions
(Updates with close of U.S. markets)
By Herbert Lash
NEW YORK, Oct 2 (Reuters) - Global stocks, crude oil and
the U.S. dollar slipped on Friday after deeper-than-expected
U.S. job losses ignited fears that a soft American labor market
could slow the pace of economic recovery.
But a slide in U.S. stocks was partially offset by positive
broker comments on companies in the tech and financial sectors
and bonds fell as investors brushed aside the jobs report to
take profits ahead of next week's $78 billion in debt auctions.
For details, see: [] []
The steep decline in September payrolls normally would be
bullish for safe-haven U.S. Treasuries. But investors appeared
to have anticipated the surprisingly bad data on Thursday, when
Treasuries enjoyed their biggest rally in two months.
U.S. Treasury debt prices fell on Friday as investors took
profits anead of next week's bond auctions.
Oil prices settled down more than 1 percent to below $70 a
barrel and copper prices closed at two-month low as the anemic
September jobs data dented the prospect for consumer demand.
[] []
Gold erased initial losses to settle above $1,000 an ounce
on a spike and subsequent retreat in the dollar, which dropped
against major currencies, as investors fretted over the
disappointing payrolls report. []
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 0.9
percent, while pan-European and shares in Asia outside of Japan
fell about 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 2.2 percent. []
The Dow Jones industrial average <> closed down 21.61
points, or 0.23 percent, at 9,487.67. The Standard & Poor's 500
Index <.SPX> was down 4.64 points, or 0.45 percent, at
1,025.21. The Nasdaq Composite Index <> was down 9.37
points, or 0.46 percent, at 2,048.11.
The benchmark 10-year U.S. Treasury note <US10YT=RR> was
down 14/32 in price to yield 3.23 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 0.25 percent at 77.995.
The euro <EUR=> was up 0.41 percent at $1.459. Against the
yen, the dollar <JPY=> was up 0.07 percent at 89.60.
U.S. crude futures <CLc1> settled down 87 cents at $69.95 a
barrel. London Brent crude <LCOc1> settled down $1.12 at $68.07
a barrel.
December gold futures <GCZ9> settled up $3.60 at $1,004.30
an ounce in New York.
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.
[]
December Bund futures <FGBLZ9> hit 122.97, their highest
level since the contract rolled.
The FTSEurofirst 300 <> index of top European shares
fell 1.85 percent to close at 963.56 points.
Every sector in the DJ Stoxx 600 <> 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.
Shares in Japan <> 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 Rodrigo Campos, Wanfeng Zhou and Burton
Friersoon in New York; David Sheppard, Brian Gorman, Pratima
Desai and Maytaal Angel in London; writing by Herbert Lash;
Editing by Andrew Hay)
