GLOBAL MARKETS-Dollar jumps, stocks rebound on U.S. jobs data

                                
 * U.S. private-sector jobs data drives dollar higher
                                
 * Wall Street rebounds as jobs creation tops forecasts
                                
 * Crude prices rebound despite dollar's strength
                                
 * Government bonds slide after strong U.S. economic data
 (Adds close of European markets)
                                
 By Herbert Lash
                                
 NEW YORK, Jan 5 (Reuters) - The U.S. dollar jumped and
global equities pared losses on Wednesday after surprisingly
strong data on private sector jobs added to growing evidence
the U.S. economy is fully on the path to recovery.
                                
 The dollar was on pace for its best one-day gain in more
than three months against the Japanese yen and in more than two
weeks against the euro after a report that U.S. private
employers added 297,000 jobs in December, nearly triple
analysts' forecasts.
                                
 The strong dollar pressured commodity prices, with copper
prices tumbling from a record hit on Tuesday and gold down in
its biggest three-day slide since mid-November.
                                
 But copper and oil prices later turned positive as the
strong dollar, which had earlier pulled down crude oil further
from 27-month highs, eased a bit.
                                
 The U.S. dollar index <.DXY> had gained more than 1 percent
before paring gains to trade up 0.86 percent.
                                
 The unexpectedly large monthly jump in U.S. private sector
jobs reported by ADP Employer Services drove down prices of
German bunds and U.S. Treasury securities as optimism over the
economy fed a bid for riskier assets. For details see:
[ID:nN05264002]
                                
 A later report from the Institute for Supply Management, an
industry group, that its gauge of the massive U.S. services
sector reached its highest level in over four years sparked a
rebound in major U.S. stock indexes and caused global equities
to trim losses. ISM said its index of U.S. services sector
activity rose to 57.1 in December, up from expectations of
55.6.
                                
 "It really flows into this narrative that we're seeing
improvements across all sectors of the U.S. economy," Greg
Salvaggio, vice president of trading at Tempus Consulting in
Washington, said about the ISM report.
                                
 "And really the ADP jobs report this morning reinforces the
view that companies are beginning to hire again," he said.
                                
 World stocks, as measured by MSCI <.MIWD00000PUS>, slid
about 0.3 percent, paring earlier losses by about half, and
were within a few points of highs last seen in September 2008.
                                
 On Wall Street, the Dow Jones industrial average <.DJI> was
up 37.73 points, or 0.32 percent, at 11,728.91. The Standard &
Poor's 500 Index <.SPX> was up 5.15 points, or 0.41 percent, at
1,275.35. The Nasdaq Composite Index <.IXIC> was up 14.83
points, or 0.55 percent, at 2,696.08.
                                
 Financials, which underperformed the broader market last
year, led gains among U.S. stocks, with the S&P financial index
<.GSPF> up 0.9 percent, while the Nasdaq led gains among the
three major stock indexes. [ID:nN05293022]
                                
 European shares eked out a small gain on the strong U.S.
data even as the stronger dollar helped to weaken metals prices
and halt a rally for miners. [ID:nLDE7041L2]
                                
  The pan-European FTSEurofirst 300 <.FTEU3> index of top
shares rose 0.04 percent to close at 1,142.46 points.
                                
 Analysts said the ADP survey bodes well for the U.S. Labor
Department report Friday due on data for December nonfarm
payrolls, a widely watched piece of economic data.
                                
 Some economists revised upward their forecast for Friday's
data, which is expected to show gains of 140,000 overall jobs,
after the ADP number.
                                
 The euro <EUR=> slid 0.9 percent at $1.3178. Against the
yen, the dollar <JPY=> rose 1.40 percent at 83.18 yen.
                                
 The strong U.S. economic reports lifted sentiment in
commodity markets.
                                
 "As equities rallied, the oil bulls that were on the
sidelines came back and prices are bouncing back solidly. We're
in a range between $88 and $92, and people will now be awaiting
the U.S. unemployment data on Friday for direction," said Gene
McGillian, of Tradition Energy in Stamford, Connecticut.
                                
 U.S. light sweet crude oil <CLc1> rose $1.04 to $90.42 a
barrel.
                                
 The premium of Brent crude <LCOc1> over U.S. benchmark West
Texas Intermediate crude rose to more than $5 a barrel, the
highest spread in seven months. [ID:nN05276442]
                                
 Spot gold prices <XAU=> fell $4.36 to $1,375.80 an ounce.
                                
 The benchmark 10-year U.S. Treasury note <US10YT=RR>
slipped 26/32 in price to yield 3.44 percent.
                                
 Earlier, Japan's Nikkei <.N225> closed down nearly 0.2
percent after hitting a 7-1/2-month closing high on Tuesday.
 (Reporting by Rodrigo Campos, Gertrude Chavez-Dreyfuss, Gene
Ramos, Emily Flitter in New York; Brian Gorman, Jessica
Mortimer, Emma Farge, Silvia Antonioli in London; Writing by
Herbert Lash)