* U.S. stocks tread water, Nasdaq reaches for record
* Dollar rises, boosted by strong wages in U.S. jobs report
* U.S. Treasury debt yields rise across the board
* Oil prices fall on doubts over OPEC production cut compliance (Updates to U.S. market open, adds details, changes dateline, previous LONDON)
By Saqib Iqbal Ahmed
NEW YORK, Jan 6 (Reuters) - Global equity prices edged lower on Friday after December's U.S. non-farm payrolls report showed a slowing in hiring but an increase in wages, setting the economy up for further interest rate increases from the Federal Reserve this year.
The jobs report sent the dollar to session highs against several major currencies, and U.S. Treasury debt yields rallied from multi-week lows.
U.S. employment increased less than expected in December but a rebound in wages pointed to sustained labor market momentum that sets up the economy for stronger growth and could drive the Fed to consider raising interest rates as early as the first quarter.
"There's still improvement to be made, especially with the labor force participation rate being low, but conditions seem to be close to what the Fed might be happy with," said Brian Jacobsen, chief portfolio strategist, at Wells Fargo Funds Management, in Menomonee Falls, Wisconsin.
MSCI's world index, which tracks shares in 46 countries, snapped a three-day gaining streak to dip 0.17 percent.
The index found some support on Wall Street as the S&P 500 treaded water in choppy trading and the Nasdaq inched towards a record high.
The Dow Jones Industrial Average fell 6.7 points, or 0.03 percent, to 19,892.59, the S&P 500 gained 0.54 points, or 0.02 percent, to 2,269.54 and the Nasdaq Composite added 17.81 points, or 0.32 percent, to 5,505.75.
European shares rallied from lows on Friday after the U.S. jobs data. Europe's broad FTSEurofirst 300 index was down 0.18 percent at 1,442.98.
The dollar recovered ground after two straight days of losses against a basket of major currencies. The dollar index , which measures the greenback against six major rivals, was up 0.25 percent to 101.77.
In bond markets, U.S. Treasury debt yields rose across the board. Yields on benchmark U.S. 10-year notes rose from a five-week trough, while those on 30-year bonds recovered from a seven-week low following the jobs data.
"The wage pressure number will give the Fed enough ammunition to consider raising rates again perhaps in the first quarter," said Dan Heckman, senior fixed income strategist, at U.S. Bank Wealth Management in Kansas City, Missouri.
The U.S. 10-year note was down 11/32 in price to yield 2.407 percent, compared with 2.368 percent late on Thursday.
The stronger dollar weighed on dollar-denominated commodity prices.
Gold slipped from a one-month high touched in the previous session. Spot gold fell 0.27 percent to $1,177.26 an ounce.
Oil prices were dragged down by concerns that not all OPEC producers will cut output in line with an agreement reached in November.
Brent crude was down 0.19 percent at $56.7 a barrel, while U.S. crude was down 0.09 percent at $53.71. (Reporting by Saqib Iqbal Ahmed; Additional reporting by Rodrigo Campos and Gertrude Chavez-Dreyfuss; Editing by Nick Zieminski)