* Stocks, commodities extend losses after U.S. jobs data
* Euro slips to fresh 4-year low versus U.S. dollar
* Oil prices slump to below $73 a barrel on jobs report
* Government debt prices rally on payrolls number
(Adds market reaction to U.S. payrolls number, byline,
dateline NEW YORK)
By Herbert Lash and Sujata Rao
NEW YORK/LONDON, June 4 (Reuters) - A dour U.S. jobs report
added to fresh fears on Friday over European banks and talk of
a "Greek-style" debt crisis in Hungary, pushing global stocks
lower and the euro to a new four-year trough to the dollar.
Safe-haven investments like gold and government debt rose
while commodities and European shares extended losses after the
U.S. Labor Department said non-farm payrolls in May rose by
431,000, far less than a consensus estimate of 513,000.
While 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 sign on new workers.
German bund futures <FGBLc1> hit a new session high, rising
to as high as 129.48 compared with 128.99 before the jobs data.
The yield on the two-year Schatz fell to 0.468 percent from
0.488 percent. For details see: []
Benchmark 10-year Treasury notes <US10YT=RR> traded up
28/32 in price at 101-30/33, compared with being 10/32 higher
shortly before the employment data.
MSCI's all-country world equity index <.MIWD00000PUS> fell
0.8 percent.
The pan-European FTSEurofirst 300 <> index of top
shares was down 1.5 percent at 1,001.31 points, led by banking
stocks.
"The initial take is this is a pretty bad number; well
below expectations," T.J. Marta, founder and market strategist
with Marta on the Markets in Scotch Plains, New Jersey:
"The key disappointment was in the private payrolls. While
we did get the census hiring, the private economy is not hiring
the way we would have liked."
Spot gold <XAU=> turned higher, reaching $1,208.75 an
ounce, after the payrolls data missed expectations.
Assets seen as higher risk fell. Copper fell to near a
5-month low and U.S. crude oil futures fell almost $2 to below
$73 a barrel.
U.S. stock index futures also extended losses. S&P 500
futures <SPc1> fell 26.4 points and were below fair value, a
formula that evaluates pricing by taking into account interest
rates, dividends and time to expiration on the contract.
Dow Jones industrial average futures <DJc1> slumped 191
points, and Nasdaq 100 futures <NDc1> lost 45 points.
The dollar fell versus the Japanese yen, while the euro
extended losses, down more than 1 percent at a session low of
$1.2019 <EUR=>, according to Reuters data.
The euro hit a record low versus Swiss franc.
European stocks were hurt by concern over the derivatives
division of French Societe Generale.
Societe Generale, which declined to comment on speculation
about losses in its derivatives division, fell 6.3 percent.
Investors earlier had been spooked again by comments out of
Hungary, perceived as the weak link in eastern Europe due to
high debt ratios.
A spokesman for the 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.
That pushed the forint currency to a one-year low and hit
shares in European banks exposed to eastern Europe.
"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."
(Reporting by Herbert Lash)
