GLOBAL MARKETS-Stocks slip, yen gains on economic uncertainty

                                
   * Risk aversion grows on uncertainty over the economy
                                
 * Yen rises to seven-week highs on safe-haven demand
                                
 * Oil prices unchanged on neutral U.S. inventory report
                                
 * Bond prices rise on tepid economic recovery outlook
 (Updates with close of U.S. markets, adds Fed minutes)
                                
 By Herbert Lash
                                
 NEW YORK, Sept 2 (Reuters) - Global stocks slipped and the
yen rose to a seven-week high against the dollar on Wednesday as
investors grew apprehensive about the strength of economic
recovery, raising the appeal of gold and other safe-havens.
                                
 A U.S. private-sector jobs report showed moderating losses in
the labor market in August, but the job cuts were greater than
forecast and highlighted uncertainty over the economy.
                                
 The yen also jumped to seven-week highs against the euro and
sterling on the data, which came two days ahead of the U.S.
government's August unemployment report. [ID:nN022995]
                                
 Gold extended gains past $980 an ounce to its highest in
almost three months as concern over the recent slide in global
equity markets raised the metal's cachet. [ID:nL2167301]
                                
 The wobbly stock market and disappointing jobs report fed a
safe-haven bid for U.S. government debt too. Prices of Treasuries
edged higher, pushing benchmark yields to seven-week lows.
[ID:nN02535214]
                                
 Minutes from the U.S. Federal Reserve's recent policy
meeting, released Wednesday, showed officials thought risks to
the U.S. economy had eased but low interest rates would be needed
for some time to bolster what would be at best a modest recovery.
                                
 The ADP Employer Services report said U.S. private employers
cut 298,000 jobs in August, down from 360,000 job losses in July,
but above economists' forecast for losses of only 250,000.
                                
 The report comes two days ahead of the closely watched U.S.
government data on non-farm payrolls.
                                
 Euro zone government bond prices rose as European equities
fell for the third straight session and investors awaited a
European Central Bank policy decision amid a raft of supply from
France and Spain. [ID:nL2650043]
                                
 The jobs market has been slow to improve and consumer
confidence has stumbled, clouding hopes demand from shoppers will
fuel economic growth. Analysts polled by Reuters expect a loss of
225,000 jobs in Friday's non-farm payroll report.
                                
 "We don't see any big rebound after the declines we've had
because people are still wary," said Chad Morganlander, portfolio
manager at Stifel, Nicolaus & Co in Florham Park, New Jersey.
                                
 Investors are waiting for Friday's non-farm payrolls data,
Morganlander said, adding: "investors are turning to gold as a
hedge" against financial malady, suggesting a high anxiety level
on Wall Street.
                                
 The Dow Jones industrial average <.DJI> closed down 29.93
points, or 0.32 percent, at 9,280.67. The Standard & Poor's 500
Index <.SPX> fell 3.29 points, or 0.33 percent, at 994.75. The
Nasdaq Composite Index <.IXIC> slipped 1.82 points, or 0.09
percent, at 1,967.07.
                                
 Financial shares again led decliners. The KBW Bank Index
 <.BKX> lost 2.3 percent. Among regional banks, SunTrust Banks
<STI.N> was down 7.2 percent.
                                
 Oil prices settled unchanged after government data showing a
smaller-than-expected drop in U.S. crude stocks offset a steep
drop in gasoline inventories. [ID:nL2551377]
                                
 Crude stocks dropped 400,000 barrels in the week to Aug. 28,
less than the 600,000 barrel drop expected by analysts. [EIA/S]
                                
 Gasoline inventories showed a steep 3 million barrel drop,
however, as U.S. fuel demand -- battered by the recession over
the past year -- rose slightly over year-ago levels.
                                
 "The EIA inventory data is overall proving to be neutral,"
said Phil Flynn, analyst for PFGBest Research in Chicago.
                                
 U.S. crude for October delivery <CLc1>  settled unchanged at
$68.05, while London Brent crude <LCOc1> fell 23 cents to $67.50
a barrel.
                                
 Copper prices bounced from a near two-week low. Copper for
December delivery <HGZ9> in New York eked out an 0.75 cent gain
to close at $2.8260 a pound.
                                
 The dollar fell 0.8 percent to 92.14 yen <JPY=> after hitting
a low of 92.07, according to Reuters data.
                                
 The dollar index, a measure of the U.S. currency against a
basket of other major units, was last down 0.5 percent at 78.391
<.DXY>.
                                
 European shares closed lower for a third straight day on
Wednesday, with financial stocks suffering the most, as investors
took profits after a strong run. [ID:nL2735474]
                                
 The FTSEurofirst 300 <.FTEU3> index of top European shares
fell 0.4 percent to close at 950.41 points.
                                
 Japan's Nikkei <.N225> closed down 2.4 percent and the MSCI
index of Asia-Pacific shares outside Japan <.MIAPJ0000PUS> shed
1.3 percent, pressured by Wall Street's drop on Tuesday.
 (Reporting by Edward Krudy, Wanfeng Zhou and Burton Frierson in
New York; Joe Brock, Brian Gorman, Simon Falush and Jessica
Mortimer in London; writing by Herbert Lash; Editing by Leslie
Adler)