* Global stocks jump on jobs data, strong Cisco results
* Prices of gold, oil retreat as US dollar firms
* Short Treasuries up on inflation outlook, bonds down
(Updates with U.S. markets, changes byline, dateline)
By Walter Brandimarte
NEW YORK, Nov 5 (Reuters) - Global stocks jumped and the
U.S. dollar firmed on Thursday after better-than-expected U.S.
jobs data improved investor confidence about the global
economy, causing gold prices to retreat from all time-highs.
The number of U.S. workers filing new claims for jobless
insurance fell more than expected last week to a 10-month low,
while productivity surged at a 9.5 percent annual rate,
improving the outlook for both the economy and inflation.
The dollar's rebound put a damper on commodity prices in
general, causing U.S. crude oil prices to drop as much as $1
per barrel.
Short-dated U.S. Treasury prices rose on the benign
inflation outlook, which resonated with the U.S. Federal
Reserve's pledge on the previous day to keep interest rates low
for "an extended period."
Long-dated Treasury prices fell, however, on concerns about
upcoming supply of bonds and increased investor appetite for
risk.
Wall Street stock indexes advanced more than 1 percent
after a rally on Wednesday that lost steam late in the day.
"The jobless claims fell to a 10-month low and that is
giving a relief to the market," said Subodh Kumar, chief
investment strategist at Subodh Kumar & Associates in Toronto.
He warned, however, that Friday's U.S. unemployment report
for October will be the real test for markets.
"Unemployment is already close to 10 percent, but if it
comes out at 10 or above, then there will be worries that the
consumers are not there for spending, and that will hurt the
market," he said.
Wall Street was also supported by a rally in technology
shares after Cisco Systems Inc <CSCO.O> posted a
stronger-than-expected quarterly profit. []
The Dow Jones industrial average <> gained 172.61
points, or 1.76 percent, to 9,974.75, while the Standard &
Poor's 500 Index <.SPX> climbed 16.57 points, or 1.58 percent,
to 1,063.07. The Nasdaq Composite Index <> was up 43.30
points, or 2.11 percent, at 2,098.82.
MSCI's all-country world stock index <.MIWD00000PUS> rose
0.8 percent while the pan-European FTSEurofirst <> ended
up 0.6 percent at 990.53 points -- its highest close since Oct.
29.
Retailers were among the top gainers in Europe, led by the
Belgian group Delhaize <DELB.BR>, which gained 5 percent after
raising its 2009 operating profit forecast.
Emerging market stocks edged 0.29 percent higher according
to a benchmark MSCI index <.MSCIEF>.
Japan's Nikkei <> closed down 1.3 percent, though,
before the release of the weekly U.S. jobless claims data.
Renewed economic hopes also allowed the U.S. dollar to rise
0.15 percent against a basket of major currencies <.DXY>.
The euro <EUR=> dipped 0.13 percent against the greenback
to $1.4857, erasing initial gains that had been fueled by an
optimistic growth forecast for the eurozone delivered by
European Central Bank President Jean-Claude Trichet.
[]
Against the Japanese yen, the dollar <JPY=> was down 0.15
percent at 90.54.
GOLD OFF HIGHS, OIL LOWER
The dollar's modest gains helped halt a series of gains in
commodity prices.
U.S. crude oil prices <CLc1> fell 70 cents, or 0.87
percent, to $79.70 per barrel, while spot gold prices <XAU=>
fell $3.45, or 0.32 percent, to $1,088.70.
Gold prices reached an all-time high of $1,097.25 an ounce
on Wednesday, and investors decided to pocket part of the gains
after the metal failed to breach the psychological level of
$1,100 an ounce.
"The fact that we didn't manage to go through $1,100 might
lead some investors to reconsider their positioning in the
sector," said Commerzbank analyst Eugen Weinberg.
The benchmark 10-year U.S. Treasury note <US10YT=RR> was
down 1/32, with the yield at 3.52 percent. The 2-year U.S.
Treasury note <US2YT=RR> was up 1/32, with the yield at 0.88
percent.
The 30-year U.S. Treasury bond <US30YT=RR> was down 7/32,
with the yield at 4.40 percent.
(Additional reporting by Angela Moon, Jan Harvey, Ellen
Freilich, Wanfeng Zhou; Editing by Kenneth Barry)
