* Stocks, commodities extend losses after U.S. jobs data
* Euro at fresh 4-yr low; French PM comments add pressure
* Oil prices slump to below $73 a barrel on jobs report
* Government debt prices, gold rally on safe-haven buying
(Adds details on euro, updates prices)
By Walter Brandimarte and Herbert Lash
NEW YORK, June 4 (Reuters) - A dour U.S. jobs report
coupled with fears over European banks and talk of a
"Greek-style" debt crisis in Hungary drove down global stocks
and sent the euro to a four-year low on Friday.
Safe-haven investments such as gold and government debt
rose while oil and other commodities extended losses after the
U.S. Labor Department said nonfarm payrolls in May rose by
431,000, far below a consensus estimate for 513,000 new jobs.
Although payrolls last month grew at their fastest pace in
10 years, buoyed by temporary hiring for the decennial census,
private hirings slowed sharply as businesses opted to increase
hours rather than take on new workers.
"The market is bothered by the fact that you had a smaller
headline gain in private payrolls, and very little of it was in
the services sector," said Cary Leahey, senior managing
director at Decision Economics in New York.
European stocks were already in negative territory before
the jobs report as concerns about derivatives operations of
French bank Societe Generale <SOGN.PA> weighed on banks and
fears about Hungary's debt situation soured market sentiment.
MSCI's all-country world equity index <.MIWD00000PUS> fell
1.6 percent.
The Dow Jones industrial average <> fell 164.60 points,
or 1.61 percent, to 10,090.68, while the Standard & Poor's 500
Index <.SPX> lost 15.73 points, or 1.43 percent, to 1,087.10.
The Nasdaq Composite Index <> was down 27.96 points, or
1.21 percent, at 2,275.07.
In Europe, the FTSEurofirst 300 <> index of top
shares was down 1.5 percent, led lower by banking stocks.
Shares of SocGen slumped more than 7 percent on the derivatives
concerns. A bank spokesman said there was nothing to be said
about the matter. []
Emerging market stocks were 0.9 percent lower according to
a MSCI index <.MSCIEF>.
"There is fear coming back into the market," said Matthew
Brown, sales trader at ETX Capital in London. "There are
unsubstantiated rumors of a French bank having derivative
losses and there are also comments coming out of Hungary."
Investors were spooked again by comments out of Hungary,
perceived as the weak link in eastern Europe due to high debt
ratios.
A spokesman for Hungary's prime minister said a leader of
the newly-elected ruling party had not exaggerated when he had
said on Thursday Hungary may face a Greek-style debt crisis.
The forint currency fell to a one-year low and pressured
shares of European banks with exposure to Eastern Europe.
EURO FURTHER PRESSURED
The euro <EUR=> weakened 0.79 percent to $1.2061, also
pressured by comments by French Prime Minister Fracois Fillon,
who said he only saw "good news" in the parity between the
European single currency and the dollar. []
Fillon's remarks were later clarified by a source, who said
his reference to "parity" was about the general evolution of
the exchange rate between the euro and the dollar.
[]
The euro traded as low as $1.2019, according to Reuters
data.
The dollar also rose against a basket of major currencies,
with the U.S. Dollar Index <.DXY> up 0.64 percent. Against the
Japanese yen, however, the dollar <JPY=> was down 0.65 percent
at 92.05.
Investors rushed into assets considered safer after the
jobs data, pushing 10-year Treasury notes <US10YT=RR> up 27/32
in price. Yields on the benchmark bond fell to 3.268 percent
from 3.37 percent on Thursday.
Spot gold <XAU=> trimmed losses, still trading 0.31 percent
lower at $1,203.80 an ounce, after touching a session low of
$1,196.65 an ounce.
Assets seen as higher risk fell. Copper fell to near a
five-month low, and U.S. crude oil futures fell 1.59 percent to
$73.42 per barrel.
(Editing by Leslie Adler)
