* MSCI world equity index up 0.4 percent
* U.S. payrolls awaited
* Equities, Aussie dollar gain ground
by Simon Falush
LONDON, Nov 6 (Reuters) - Global stocks and commodities
gained on Friday, buoyed by firm U.S. data the previous session,
lifting risk appetite ahead of hotly anticipated jobs data which
will give more evidence on the state of the global economy.
Investors were reluctant to take big positions ahead of U.S.
non-farm payrolls data due at 1330 GMT. The U.S. economy is
expected to have shed 175,000 jobs in October, the 22nd month of
declines but a smaller decline than in September.
Optimism that the figure may come in lower than expected was
fostered after the U.S. Labor Department said initial claims for
state unemployment benefit had dropped to its lowest level since
early January.
Data showing that U.S. productivity grew at its fastest pace
in six years also helped lift demand for riskier assets like
equities and commodities like oil and metals. []
By 0859 GMT the MSCI world equity index <.MIWD00000PUS> was
up 0.4 percent, its highest since last Friday and up 2.6 percent
this week.
"The key figure we've got out today is the non-farm
payrolls, so if it doesn't live up to expectations then I think
we're going to see a big dump in these markets," said Mike
Lenhoff, strategist at Brewin Dolphin.
"If the figure at least matches expectations, and if it's
better, we'll do okay and we should end the week on a reasonably
firm note," he said.
Reflecting the increased appetite for risk, emerging markets
equities outperformed, up 1.1 percent <.MSCIEF>.
European stocks tracked gains in Asia with the FTSEurofirst
300 index <> up 0.5 percent.
G20 WATCHED
As well as the payrolls data, a meeting of G20 policymakers
due to start later on Friday in Scotland will also be closely
watched.
The policymakers are agreed that it is too early to pull the
plug on the economic life-support packages, British finance
minister Alistair Darling told Reuters in an interview.
[]
The U.S. dollar held steady against the euro at around
$1.4880 <EUR=> but retreated 0.3 percent to 134.60 yen <JPY=>.
Analysts said a strong payrolls number would no necessarily
be a positive for the dollar as the possibility of interest rate
increases in the near term look set to remain remote.
"The dovish Fed statement this week has raised the bar for a
positive jobs number to lead to a higher dollar as the Fed is
not likely to tighten policy anytime soon." said Lee Hardman,
currency strategist at Bank of Tokyo-Mitsubishi UFJ.
Higher yielding currencies gained ground. The Australian
dollar rose 0.7 percent <AUD=> and the New Zealand dollar <NZD=>
added 0.6 percent.
Euro zone government bond futures <FGBlc1> were flat on the
day at 121.02 and yields narrowly mixed as investors stood on
the sidelines ahead of the payrolls data.
The interest rate-sensitive two-year Schatz yield was down
0.9 basis points on the day at 1.31 percent.
The 2/10 year yield spread <EU10YT=RR><EU2YT=RR> was at 203
bps, steady since the European settlement close on Thursday.
But commodities, which tend to gain as risk appetite
recovers and the demanD outlook brightens, gained.
Crude <CLc1> moved comfortably above $80 per barrel while
copper prices <MCU3=LX> gained over a percent.
(Additional reporting by Tamawa Desai and Tricia Wright;
Editing by Victoria Main)
