GLOBAL MARKETS-Risk rally pauses on U.S. data, trade talk caution

(Adds U.S. market open, byline, dateline; previous LONDON)
* Dollar, Wall Sreet slip after U.S. productivity data
* Bond sell-off pauses for further developments
* Oil prices fall on rising crude stockpiles

By Herbert Lash
NEW YORK, Nov 6 (Reuters) - The dollar slid and the
three-day global stock market rally paused on Wednesday as U.S.
productivity data disappointed and investors turned a bit
cautious about U.S.-China trade talks.
MSCI's All Country World Index .MIWD00000PUS , a gauge of
equity performance in 47 countries, was marginally higher at
0.02% after rallying 1.3% since Friday.
Stocks on Wall Street slid and benchmark U.S. Treasury
prices gained following a three-day sell-off. U.S. Government
data showed American workers were unexpectedly less productive
during the third quarter.
Equity markets have rallied on a reduced recession outlook
and optimism a "phase one" U.S.-China trade deal can be reached
this month and as global business surveys indicate tariff-hit
manufacturing sentiment has troughed.
France's benchmark 10-year bond yield turned positive for
the first time since July, a further sign that pessimism is
abating in world bond markets. EUR/GVD
Investors said lingering concerns about the U.S.-China trade
talks had stock markets consolidating gains made over the last
three sessions.
"What you saw over the last two days is a bit of confusion
on the China phase one deal ... and that started affecting risk
appetite," said Juan Perez, a senior currency trader at Tempus
Inc in Washington.
Traders and investors hope a preliminary deal will roll back
at least some of the punitive tariffs Washington and Beijing
have imposed on each other's goods, but it remained uncertain
when or where U.S. President Donald Trump will meet Chinese
President Xi Jinping to sign the agreement.
European stocks edged higher, boosted by gains in financial
stocks as investors assessed a mixed bag of earnings reports.
The pan-European STOXX 600 index .STOXX was higher by
0.12%. .EU Britain's FTSE 100 .FTSE index was flat, while
Germany's DAX .GDAXI and France's CAC 40 .FCHI were up 0.15%
and 0.25%, respectively. each.
On Wall Street, the Dow Jones Industrial Average .DJI fell
11.1 points, or 0.04%, to 27,481.53. The S&P 500 .SPX lost
1.05 points, or 0.03%, to 3,073.57 and the Nasdaq Composite
.IXIC dropped 32.93 points, or 0.39%, to 8,401.75.
The U.S. Labor Department said nonfarm productivity, which
measures hourly output per worker, fell at a 0.3% annualized
rate in the third quarter, the biggest decline in almost four
years. Data in Europe showed signs of economic improvement.
German industrial orders rose more than expected in
September, offering some hope for manufacturers in Europe's
biggest economy after a tough spell.
Euro zone business activity expanded slightly faster than
expected last month but remained close to stagnation, according
to a survey. In currencies, the dollar index .DXY fell 0.08%, with the
euro EUR= down 0.01% to $1.1073. The Japanese yen EUR=
strengthened 0.13% versus the greenback at 109.02 per dollar.
Oil prices fell,, reversing some gains of the previous three
sessions, after a surprisingly large build in U.S. crude
inventories and weak euro zone economic figures.
Brent crude LCOc1 was down 14 cents at $62.82 a barrel.
West Texas Intermediate crude CLc1 was down 13 cents at
$57.10.
Benchmark 10-year U.S. Treasury notes US10YT=RR rose 10/32
in price to push their yield down to 1.8318%.

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