(Adds bullets, fund flow data, Wall Street futures)
* World stocks on 7-week winning streak, longest since 2010
* US jobs growth disappoints, dollar slips
* Germany's DAX, UK's FTSE at record highs
* Trump backing out of climate pact sinks oil further
* $13.1 bln pumped into global equities last week: BAML/EPFR
By Vikram Subhedar
LONDON, June 2 The dollar retreated slightly
after disappointing U.S. jobs growth data on Friday though world
stocks clung on to record highs, having gained 11 percent so far
Nonfarm payrolls increased 138,000 last month as the
manufacturing, government and retail sectors lost jobs, the
Labor Department said on Friday.
While the job gains could still be sufficient for the
Federal Reserve to raise interest rates this month, the modest
increase could raise concerns about the economy's health after
growth slowed in the first quarter.
"This number is not the kind of report that derails the Fed
from raising rates in June," said Tom Porcelli, chief U.S.
economist at RBC Capital Markets in New York.
"We're in a mature phase of the cycle, job growth is going
to slow down. The Fed has been talking about this for over a
year at this point and they are braced for that reality."
The dollar index, which measures the greenback's
strength against a basket of major currencies, fell 0.3 percent.
Stock futures on Wall Street trimmed gains slightly and were
last trading little changed.
Overnight, data showing a healthy uptick in private sector
hiring and factory activity during May bolstered expectations
that the U.S. economy was picking up speed and lifted U.S.
stocks after two days of losses.
Those gains filtered through to global stocks, lifting the
MSCI All-Country World index 0.4 percent to a
record high and on track to post a seventh straight week of
gains, the longest such run since 2010.
Stocks in Europe joined the party with German bluechips
powering ahead to a record, up 1.6 percent. The UK's FTSE 100
also hovered near its highest-ever levels rose 0.4
So far this year investors have pumped $140 billion globally
into stock funds, according to fund flow data from Bank of
America Merrill Lynch and EPFR showed on Friday.
Global equities attracted $13.7 billion in the latest week
to Wednesday, the largest inflows in five weeks, as investors
loaded up on risk.
In commodities, however, oil prices resumed their slide with
key futures contracts down more than 2 percent amid worries that
U.S. President Donald Trump's decision to abandon a global
climate pact could spark more crude drilling in the United
States, stoking a persistent glut in global supply.
Global benchmark Brent crude futures fell to $49.63
a barrel, while U.S. West Texas Intermediate crude by
more than a dollar to $47.36 per barrel.
(Reporting by Vikram Subhedar; Editing by Hugh Lawson and Keith