* Better than expected U.S. jobs data boost risk assets
* Jobs data adds to view U.S. economy is gaining strength
* US dollar firms vs major currencies, Treasuries slip
* Oil up initially before turning lower on profit-taking
(Recasts and updates prices after US markets' early trade)
By Barani Krishnan and Herbert Lash
NEW YORK, April 1 (Reuters) - U.S. stocks hit their highest
levels since June, and shares on other major markets rose too,
as investors began the second quarter with optimism, after an
upbeat U.S. employment report.
Shares on Wall Street [] jumped after the U.S.
government reported a second straight month of solid gains in
jobs and a slight drop in unemployment, which stood at 2-year
lows.
Analysts said the job numbers signalled that recovery in
the world's largest economy remained firmly on track.
The jobs data is "very consistent with the view that the
recovery is gaining some momentum," said Hugh Johnson, chief
investment officer of Hugh Johnson Advisors LLC in Albany, New
York. "It's hard to argue with the case that we have further to
go in this bull market economic recovery cycle."
The Dow Jones industrial average <> was up 88.97
points, or 0.72 percent, at 12,408.70, above the previous high
of 12,391.29 for 2011.
The Standard & Poor's 500 Index <.SPX> was up 10.25 points,
or 0.77 percent, at 1,336.08. The Nasdaq Composite Index
<> was up 16.48 points, or 0.59 percent, at 2,797.55.
Global stocks, as measured by the MSCI All-Country World
Index <.MIWD00000PUS> rose 0.6 percent.
The improving jobs picture was a short-term positive for a
stronger U.S. dollar also. The greenback added to early session
gains and was up 0.9 percent against a basket of major
currencies <.DXY> while rising 0.5 percent versus the euro
<EUR=>.
A total of 216,000 nonfarm U.S. jobs were added in March,
the government said, well above the 190,000 expected in a
Reuters poll.
January and February employment figures were revised to
show 7,000 more jobs than previously reported, and the
unemployment rate fell to a two-year low of 8.8 percent. For
details, see []
ENERGY COSTS RISING
While the latest job statistics looked encouraging, there
was concern that rising energy and commodity prices could
squeeze investments in business expansion, threatening the
employment outlook.
"One has to wonder whether we'll see the pace of hiring
slow as a result," said Bernard Baumohl, chief global economist
at the Economic Outlook Group in Princeton, New Jersey.
Oil prices rose 2.0 percent to hit 2-1/2 year highs on
Thursday. They extended the rally briefly on Friday, after the
release of the job numbers, before turning lower on
profit-taking. At 10:11 ET (1411 GMT), crude futures were down
0.1 percent at $106.62 a barrel in New York <CLK1> and off 0.3
percent at $116.98 in London <LCOc1>.
U.S. copper's benchmark contract May <HGK1> was down 1.8
percent at $4.2310 a lb.
BOND YIELDS RISE
U.S. Treasuries fell as the rise in stock prices indicated
higher risk appetite, but trimmed losses after New York Federal
Reserve Bank President William Dudley said the nation was still
"very far away" from achieving the dual mandate of maximum
sustainable employment and price stability.
Dudley's remarks, prepared in a statement, countered more
hawkish comments from other Fed officials, notably one
non-voting member of the Fed's policy committee.
Benchmark 10-year Treasury notes <US10YT=RR>, down 8/32
before Dudley's remarks, were off 2/32 after them. The 10-year
yield stood at 3.49 percent, versus 3.48 percent Thursday.
Safe-haven gold <XAU=> slipped 1.0 percent to a session low
at $1,419.60 an ounce and was bid at $1,421.35 an ounce at 1302
GMT, against $1,436.48 late in New York on Thursday. U.S. gold
futures for April delivery fell $17.10 to $1,421.80.
(To read Reuters Global Investing Blog click on
http://blogs.reuters.com/globalinvesting; for the MacroScope
Blog click on http://blogs.reuters.com/macroscope; for Hedge
Fund Blog click on http://blogs.reuters.com/hedgehub)
(Writing by Barani Krishnan and Herbert Lash)
