* Global stocks flat despite disappointing jobs report
* U.S. dollar falls vs euro after tepid U.S. jobs data
* Bonds slip after recent rally on profit-taking
* Crude oil falls to near $72 a barrel after jobs data
(Adds close of U.S. markets)
By Herbert Lash
NEW YORK, July 2 (Reuters) - The dollar, crude oil and U.S.
equities fell on Friday after a weak U.S. jobs report rekindled
doubts about the strength of recovery yet failed to confirm
widespread fears the economy is dipping back into recession.
The price of safe-haven U.S. Treasuries slipped after many
investors concluded the jobs report was not as bad as had been
feared, leading to a mild bout of profit-taking. For details see:
[]
The unemployment rate fell as discouraged American workers
dropped out of the labor force, but a modest rise in private
employment tempered worries of a double-dip recession.
[]
Earlier in Europe, the price of German Bund futures fell while
European shares ended slightly higher as the worst fears about the
U.S. economy failed to come true. []
"With all the gloom and doom before the report, you could say it
wasn't as bad as it could have been, but it's probably not a positive
for the economy," said Robert Yawger, senior vice president, energy
futures at MF Global in New York.
ON WALL ST, WORST WEEK IN 2 MONTHS
U.S. stocks posted their worst week in two months on the jobs
data and a report that showed new orders for U.S. factory products
dropped by the sharpest since the depth of the recession and fell for
the first time in nine months.
A technical move that suggested more selling pressure may be
ahead also weighed on U.S. stocks. The S&P 500's 50-day moving
average broke below its 200-day moving average, a development known
as the "death cross."
Volume on Friday was among the worst five days of the trading
year, with many participants leaving early for the long Fourth of
July holiday weekend.
The Dow Jones industrial average <> closed down 46.05 points,
or 0.47 percent, at 9,686.48. The Standard & Poor's 500 Index <.SPX>
lost 4.79 points, or 0.47 percent, to 1,022.58. The Nasdaq Composite
Index <> fell 9.57 points, or 0.46 percent, to 2,091.79.
Global shares ended at break-even, however. MSCI's all-country
world equity index <.MIWD00000PUS> rose 0.03 percent, while its
emerging markets index <.MSCIEF> gained 0.4 percent.
The pan-European FTSEurofirst 300 <> index of top shares
rose 0.1 percent to close at 969.66 points. The index lost 4.3
percent for the week.
"What seems to be happening is that people are a bit less worried
now about the idea the U.S. economy is already sliding into a
double-dip recession," Julian Jessop, fixed-income strategist at
Capital Economics, said about the data.
OIL FALLS, DOLLAR DROPS VS EURO
U.S. crude oil prices fell a fifth straight day to a three-week
low on the bearish U.S. economic data.
U.S. crude oil futures <CLc1> slipped 81 cents, or 1.11 percent,
to settle at $72.14 a barrel, the weakest close since June 8.
ICE Brent crude oil futures <LCOc1> fell 69 cents, or 0.95
percent, to settle at $71.65, the weakest close since May 25.
Gold prices rebounded on technical strength and bargain hunting
after double-dip recession fears triggered the biggest losses in six
weeks on Thursday.
Gold was supported by a stronger euro against the dollar before
the long U.S. Independence Day weekend.
U.S. gold futures for August delivery settled $1 higher at
$1,207.70 an ounce, but ended the week nearly 4 percent lower.
U.S. bond prices were mixed. The benchmark 10-year note
<US10YT=RR> was down 9/32 in price to yield 2.98 percent. The 2-year
U.S. Treasury note <US2YT=RR> was flat at 0.63 percent.
"The uncertain response in bonds suggests the employment report
was a difficult read. There's a lot of mixed data in there," said Kim
Rupert, managing director of global fixed-income analysis at Action
Economics LLC in San Francisco.
The dollar slipped against the euro, extending the previous day's
steep losses, on concerns about the U.S. recovery. []
The euro rallied sharply against the dollar this week as
investors looked past economic problems in the euro zone and focused
instead on the possibility of a stalled U.S. recovery.
The jobs report "reinforces the market's view that the U.S.
recovery is losing steam," said Greg Salvaggio, vice president of
trading at Tempus Consulting in Washington.
The dollar was down against a basket of major currencies, with
the U.S. Dollar Index <.DXY> down 0.44 percent at 84.343.
The euro <EUR=> was up 0.19 percent at $1.2541.
Against the yen, the dollar <JPY=> was up 0.22 percent at 87.79.
Earlier in Asia, stocks gave up early gains to trade flat as
investors remained nervous ahead of the closely followed U.S. jobs
report.
Japan's Nikkei average <> ended a touch firmer after choppy
trade, rising 0.13 percent to close at 9,203.71, just above the key
9,200 support level, while the MSCI index of Asia Pacific stocks
outside Japan <.MIAPJ0000US> fell 0.1 percent.
(Reporting by Chuck Mikolajczak, Wanfeng Zhou, Robert Gibbons and
Burton Frierson in New York; Ikuko Kurahone in London; Lucia Mutikani
in Washington; Writing by Herbert Lash; Editing by Jan Paschal)
