GLOBAL MARKETS-Stocks hover as weak European data, trade anxiety offsets U.S. jobs boost

* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh

By Ritvik Carvalho
LONDON, Oct 7 (Reuters) - Global stocks were little changed
on Monday as broadly positive U.S. jobs data quelled some fears
about an economic slowdown, but nervousness over U.S.-China
trade talks persisted and more weak European economic data
trickled in.
European shares dipped as a fall in German industrial orders
data underscored concerns about a looming recession in Europe's
largest economy. The pan-European STOXX 600 .STOXX was down
0.13% by 0800 GMT. .EU
Stocks globally took a battering last week, falling to their
lowest level in over a month on fears of a U.S. economic
slowdown. But positive U.S. jobs data on Friday helped spark a
turnaround.
"I think the fact that the U.S. jobs report was broadly
positive really put the brakes on the fear factor that was
circulating last week - that the U.S. has been hit hard by the
trade war," said David Madden, market analyst at CMC Markets in
London.
Asian stocks rallied in the slipstream of gains on Wall
Street, with MSCI's broadest index of Asia-Pacific Shares
outside Japan rising 0.1%. .MIAPJ0000PUS
Japan's Nikkei stock index .N225 opened higher but
reversed course and fell 0.2%. A key Japanese economic index
fell in August and the government downgraded its outlook for the
economy to "worsening", suggesting export-reliant Japan could
slip into recession. MSCI's All-Country World Index .MIWD00000PUS , which tracks
shares across 47 markets, flitted between positive and negative
territory for most of trade in London. It was last flat.
Germany's DAX .GDAXI declined 0.2% after the data showed
industrial orders fell slightly more than expected in August.
Morale among investors in the euro zone dropped in October
to its lowest level in more than six years as stimulus measures
taken by central banks failed to allay recession fears, a survey
by the Sentix research group showed. Besides the steady trickle of weak economic data, investors
also had their eyes on U.S.-China trade talks. Bloomberg
reported that Chinese officials are signalling they are
increasingly reluctant to agree to a broad trade deal pursued by
U.S. President Donald Trump. The report briefly lifted the safe-haven Japanese yen and
gold.
An impeachment drive by U.S. Democrats over a
whistleblower's allegations that Trump leveraged $400 million in
aid to secure a promise from Ukraine's President to investigate
political rival Joe Biden will continue this week. Several U.S.
diplomats will head to Capitol Hill for closed-door testimonies.
On Sunday, lawyers said a second whistleblower had come
forward to substantiate the first complaint from an unnamed U.S.
government official, which touched off the investigation.
"I think it's fair to say the second whistleblower coming
forward will be an issue for Trump. This strengthens China's
bargaining position in the trade war," Madden said.
U.S. stock futures were 0.5% lower. ESc1 NQc1 .N
In currencies, the dollar was 0.1% higher against a basket
of peers. The euro was 0.1% lower at $1.0967 EUR=EBS . Sterling
fell as investors fear Britain and the European Union are no
closer to agreeing a Brexit withdrawal deal. GBP/
Euro zone government bond yields were little changed as
investors weighed the prospects of a resilient economy in the
United States against concern that U.S.-Sino trade negotiations
would fail. GVD/EUR
Yields in the euro area traded broadly neutral, with the
German 10-year Bund yield falling 0.4 basis points to -0.59%
DE10YT=RR .
Portuguese bonds were also supported by news on Friday that
DBRS has upgraded Portugal's credit rating. Oil prices rose. Brent crude futures were higher by 0.2% at
$58.51 per barrel, while West Texas Intermediate (WTI) crude
were 0.5% higher at $53.06.
Spot gold XAU= , fell 0.14% to $1,502.30 per ounce.