(Updates to late-morning U.S. trading; changes byline,
dateline, previous LONDON)
* Bond markets get respite after U.S. jobs report
* U.S. payroll data fail to spur bets on faster rate-hike
* Global stocks tread water ahead of Italy referendum
* Oil prices reverse losses on weaker dollar
By Richard Leong
NEW YORK, Dec 2 Bond yields fell on Friday as
solid U.S. jobs data reinforced the view that the Federal
Reserve would raise interest rates gradually, while stock and
currency markets were cautious ahead of an Italian
constitutional reform vote on Sunday.
Crude futures rebounded on a weaker dollar, resuming a rise
sparked by a cut in oil output agreed this week by the
Organization of Petroleum Exporting Countries, the first since
2008. Russia also agreed to reduce production for the first time
in 15 years.
The strength of the U.S. November payrolls report had been
seen as critical for the Fed to lift rates again for the first
time in nearly a year.
"Our view is that, aside from tax and death, a December hike
is a certainty and it's priced into the market at this point,"
said Shannon Soccocia, head of asset allocation at Boston
The U.S. unemployment rate slipped to 4.6 percent last
month, its lowest in more than nine years, but wages
unexpectedly fell 0.1 percent, dashing expectations of faster
growth in household income that would fire up inflation.
"We are pretty close to full employment, but we are not
seeing upward pressure on wages," said Kathy Jones, chief fixed
income strategist at Schwab Center for Financial Research.
After the wages data, longer-dated U.S. Treasury yields
retreated further from the near 1-1/2-year peaks they reached on
The benchmark 10-year Treasury note yield was
down 5 basis points at 2.387 percent and the German 10-year Bund
yield fell 6 basis points to 0.293 percent.
As bond markets took a breather from their massive selloff
since Donald Trump's U.S. presidential win, global equities were
on the back foot as investors took profits on a run-up on bets
that tax cuts and less regulations which Trump campaigned on
would be enacted and spur faster economic growth.
The Dow Jones industrial average was up 1.33 points,
or 0.01 percent, to 19,193.26, the S&P 500 was up 6.24
points, or 0.28 percent, to 2,197.32 and the Nasdaq Composite
was up 23.40 points, or 0.45 percent, to 5,274.50.
MSCI's broadest index of Asia-Pacific shares outside Japan
fell 0.73 percent to 430.75.
The MSCI world equity index, which tracks
shares in 45 nations, rose 0.15 percent to 413.08.
Anxiety over the possibility of Italians rejecting Prime
Minister Matteo Renzi's referendum, which could fuel political
instability in euro zone's third-biggest economy, has caused
choppy trading across European markets.
Europe's broad FTSEurofirst 300 index dropped 0.16
percent at 1,340.65.
The euro was down as much as 0.3 percent at $1.0626
before recovering following the November U.S. jobs report. The
euro zone common currency was last up 0.1 percent at $1.0670.
The dollar index was down 0.3 percent at 100.74.
A weaker greenback helped reversed the oil market's initial
losses. Brent crude was last up 0.4 percent at $54.16 a
barrel. U.S. crude was last up 0.6 percent, at $51.34 per
Spot gold prices rose 0.4 percent to $1,175.86 an
(Additional reporting by Vikram Subhedar, Patrick Graham and
John Geddie in London; Editing by Larry King and James