* Dollar rebounds from 8-month low vs yen on jobs data
* Oil extends rally above $82 on lower U.S. crude stocks
* Bond prices ease in profit taking from recent gains
* Gold breaks $1,200/oz, up for sixth consecutive day
(Adds close of European markets)
By Herbert Lash
NEW YORK, Aug 4 (Reuters) - Stocks rose and the dollar
strengthened on Wednesday after positive data on U.S. jobs and
European and U.S. services industries rekindled bets on riskier
assets.
U.S. Treasuries extended losses as investors booked profits
from a recent rally that pushed yields on two-year notes to
record lows on Tuesday. For details see []
Investors took heart after data showed U.S. private
employers added 42,000 jobs in July, compared with a revised
gain of 19,000 in June, according to payrolls processor ADP
Employer Services. []
The vast service sectors in the United States and euro zone
both grew last month, reports showed, easing some worries about
a severe slowdown in the global economic recovery.
[]
MSCI's all-country world index <.MIWD00000PUS> pared losses
to trade near break-even.
"The data was better than expected, and the market likes
that, but 'blah' is the best way still to define this
recovery," said Peter Boockvar, equity strategist at Miller
Tabak & Co in New York.
The European data held a mixed message, however. Fears of a
double dip recession were allayed after the euro zone's
dominant service sector picked up speed in July, but strong
growth in Germany and France masked weakness in southern
Europe. []
European equities ended slightly higher on news of the U.S.
economic data but German Bunds were up on the day, supported by
broader worries about a faltering global economic recovery.
[]
"Markets are struggling to understand what's happening and
whether to put emphasis on the good part of the news or on the
bad part, and this explains the nervousness," said Philippe
Gijsels, head of research at BNP Paribas Fortis Global Markets
in Brussels.
The FTSEurofirst 300 <> index of top European shares
closed 0.2 percent higher at 1,071.02 points.
On Wall Street, the Dow Jones industrial average <> was
up 54.04 points, or 0.51 percent, at 10,690.42. The Standard &
Poor's 500 Index <.SPX> was up 6.04 points, or 0.54 percent, at
1,126.50. The Nasdaq Composite Index <> was up 17.71
points, or 0.78 percent, at 2,301.23.
The dollar rebounded from an eight-month low against the
yen and rose against the euro as the U.S. data prompted traders
to unwind bets against the U.S. currency. []
"It's obvious the pace of U.S. growth is slowing and people
are waiting to sell the dollar at better levels," said
Hidetoshi Yanagihara, senior currency trader at Mizuho
Corporate Bank in New York.
The dollar was up against a basket of major currencies,
with the U.S. Dollar Index <.DXY> up 0.47 percent at 80.972.
The euro <EUR=> was down 0.50 percent at $1.316 and against
the Japanese yen, the dollar <JPY=> was up 0.64 percent at
86.33.
U.S. Treasury debt prices fell. The benchmark 10-year U.S.
Treasury note <US10YT=RR> was down 10/32 in price to yield
2.9426 percent. The 2-year U.S. Treasury note <US2YT=RR> was
down 2/32 in price to yield 0.57 percent.
Benchmark U.S. crude oil prices rose a touch after earlier
declines, responding to official figures showing a higher than
expected fall in crude stocks. []
The optimism was, however, tempered by a rise in gasoline
and distillate inventories.
U.S. light sweet crude oil <CLc1> rose 21 cents to $82.76 a
barrel.
Spot gold prices <XAU=> rose $14.45 to $1,199.10 an ounce.
Earlier in Asia, Tokyo stocks <> fell 2.1 percent,
while the MSCI Asia-Pacific index that excludes Japan
<.MIAPJ0000PUS> was down 0.1 percent.
Fears that a strong yen would erode exporters' profits and
sap economic growth boosted Japanese government bonds, pushing
the 10-year yield <JP10YTN=JBTC> below 1 percent for the first
time in seven years.
(Reporting by Herbert Lash; Editing by Kenneth Barry)
