* Global stocks extend losses after U.S. labor report
* Dollar rallies vs yen after U.S. January jobs data
* Euro touches lowest against the dollar since May
* Bonds gaining after mixed U.S. employment report
* Oil slips below $73 a barrel, spot gold also lower
(Updates with U.S. markets, changes dateline, adds byline)
By Natsuko Waki and Herbert Lash
LONDON/NEW YORK, Feb 5 (Reuters) - Global shares slid to
three-month lows on Friday as government bonds and the dollar
rose after unexpected weakness in the U.S. labor market and
euro zone sovereign debt problems pressured risky assets.
The euro fell to its lowest level against the U.S. dollar
since May on rising risk aversion. The cost of insuring the
debt of some euro zone countries against default hit record
highs on worries over their fiscal positions. For details see:
[]
The dollar was bolstered against both the euro and yen
after a report on U.S. payrolls showed American employers cut
more jobs in January even as the unemployment rate fell.
The dollar's strength hammered commodity prices, which fell
sharply in Thursday's global rout, with gold and copper both
sliding to three-month lows.
U.S. stocks turned lower after initial gains while gold cut
some losses on the mixed picture on U.S. labor conditions,
which suggested recovery from the deepest global recession
since World War Two would remain uneven. []
The U.S. economy shed 20,000 non-farm payroll jobs in
January and the unemployment rate unexpectedly fell to
five-month low of 9.7 percent. Analysts had expected a gain of
5,000 jobs while the jobless rate was seen edging up to 10.1
percent from 10 percent in December.
"It's a series of conflicting data. ... The positive take
is basically it wasn't a total disaster, but the flip side of
it is you're not seeing a recovery," said Doug Roberts, chief
investment strategist at Channel Capital Research.com in
Shrewsbury, New Jersey.
The MSCI all-country world index <.MIWDOOOOOPUS> fell 1.8
percent, hitting its lowest since early November. European
shares <> fell to two-month lows, following sharp falls
in Asia.
At 10 am. (1500 GMT) the Dow Jones industrial average
<> was down 44.81 points, or 0.45 percent, at 9,957.37. The
Standard & Poor's 500 Index <.SPX> was down 4.10 points, or
0.39 percent, at 1,059.01. The Nasdaq Composite Index <>
was down 7.59 points, or 0.36 percent, at 2,117.84.
The euro fell as low as $1.3649 <EUR=>. The single currency
has been under pressure all week as widening government bond
spreads highlighted concerns over the ability of some euro zone
governments to pay their debts. The bond prices of heavily
indebted euro zone countries, including Greece, Portugal and
Spain, fell sharply.
The cost of insuring Greek, Portuguese and Spanish debt
against default, measured by credit default swaps, both hit
record highs on Friday.
The concern over sovereign credit has also begun to knock
confidence in markets beyond the euro zone.
Stocks in emerging markets have fallen sharply in the past
two weeks, with a key index <.MSCIEF> at a three-month low.
Crude oil <CLc1> fell 30 cents to $72.84 a barrel after
hitting intraday low of $72.42 on Thursday.
Spot gold <XAU=> fell $5.70 to $1,057.30 after touching a
three-month low of $1,049.50 an ounce.
U.S. government debt prices rose in choppy trading. The
benchmark 10-year U.S. Treasury note <US10YT=RR> was up 2/32 in
price to yield 3.59 percent.
(Reporting by Richard Leong and Nick Olivari in New York;
Christopher Johnson in London; writing by Herbert Lash; Editing
by Padraic Cassidy)
