GLOBAL MARKETS-Stocks jump, yields and dollar fall, as U.S. data fans rate cut talk

* S&P 500 posts biggest weekly pct gain since November 2018
* Dollar drops, gold rallies following U.S. jobs report
* Oil prices jump

(Updates with closing U.S. market levels)
By Caroline Valetkevitch
NEW YORK, June 7 (Reuters) - Major world stock indexes
jumped and U.S. Treasury yields tumbled on Friday after a
slowdown in job growth fueled hopes of a U.S. interest rate cut,
while hints of progress in Washington's trade fights added to
equity market optimism.
The U.S. dollar index dropped and gold prices rallied to
their highest levels since April 2018 after the U.S. Labor
Department's monthly report, which also showed wages rose less
than expected in May. Yields on 10-year Treasury
notes hit their lowest since September 2017.
The jobs data suggested the loss of momentum in economic
activity was spreading to the labor market, which could put
pressure on the Federal Reserve to cut rates this year.
On Wall Street, the benchmark S&P 500 index and Dow Jones
industrial average registered their biggest weekly percentage
gains since November. "Right now the market is willing to accept disappointing
growth in exchange for the prospect of lower rates," said Jack
Ablin, chief investment officer at Cresset Capital Management
in Chicago.
Hopes that the Fed would turn more accommodative to blunt
the impact of escalating trade tensions have helped support
stocks in recent days. Friday's trade-related news gave investors reason to cheer,
though. The U.S. government said it was granting Chinese
exporters two more weeks to get their products into the United
States before increasing tariffs on those items. President Donald Trump said there was a "good chance" the
United States would make a trade deal with Mexico. The Dow Jones Industrial Average .DJI rose 263.28 points,
or 1.02%, to 25,983.94, the S&P 500 .SPX gained 29.85 points,
or 1.05%, to 2,873.34 and the Nasdaq Composite .IXIC added
126.55 points, or 1.66%, to 7,742.10.
The pan-European STOXX 600 index .STOXX rose 0.93% and
MSCI's gauge of stocks across the globe .MIWD00000PUS gained
1.01%.
In late U.S. Treasuries trading, yields on U.S. 10-year
Treasury notes US10YT=RR were 3.70 basis points lower at
2.086%. They touched 2.053% after the payrolls report, their
lowest since September 2017. With tensions between the United States and its trading
partners still brewing, investors have been assessing how global
central banks will respond to signs of a downturn.
Traders now are betting on multiple rate cuts by the Fed
over the next 12 months.
But a cut is not guaranteed. And the potential for central
banks to disappoint markets was highlighted on Thursday, when
the European Central Bank declined to hint it would cut rates
soon. The U.S. dollar index .DXY fell to its lowest since March
26 and was last down 0.5%. The euro EUR= was up 0.54% to
$1.1335. In the energy market, crude prices gained sharply after
Saudi Arabia said OPEC was close to agreeing to extend an output
production cut beyond June. Brent crude LCOc1 futures gained $1.62, or 2.6%, to settle
at $63.29 a barrel. U.S. crude CLc1 ended at $53.99 a barrel,
up $1.40, or 2.7%.
Gold prices jumped to their highest levels since April 2018
as the jobs report sent the dollar lower. Spot gold XAU= was
0.4% higher at $1,339.97 per ounce, having earlier hit its
intra-day high of $1,348.08. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
World FX rates in 2019 http://tmsnrt.rs/2egbfVh
MSCI All Country Wolrd Index Market Cap http://tmsnrt.rs/2EmTD6j
Emerging markets in 2019 http://tmsnrt.rs/2ihRugV
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