GLOBAL MARKETS-Stocks rally, commodities jump on U.S. jobs report

* MSCI AWCI, Dow, S&P500 indexes hit fresh highs
* Copper hits all-time high on recovery prospects
* Graphic: Global asset performance http://tmsnrt.rs/2yaDPgn
* Graphic: World FX rates http://tmsnrt.rs/2egbfVh

By Herbert Lash and Ritvik Carvalho
NEW YORK/LONDON, May 7 (Reuters) - The dollar slid to a
two-month low, commodity prices jumped and major global equity
indexes scaled new peaks on Friday after weak U.S. jobs data for
April tamped down fears that a booming economy would ignite
inflation and higher interest rates.
The data eased worries the Federal Reserve would reduce its
massive stimulus program anytime soon, while a top White House
economic adviser said the report does not mean the Biden
administration needs to change its policy course. The yield on the benchmark 10-year U.S. Treasury note
dropped to a two-month low of 1.469% and gold extended a rally
that put it on track for its best week since November. Copper
burst to a record peak, surpassing a high set a decade ago.
Nonfarm payrolls increased by only 266,000 jobs in April and
data for March was revised down to show 770,000 jobs were added
instead of 916,000 as previously reported. The report doused
fears of an overheating economy that would spur inflation.
"Anybody who thought the Fed is going to be tapering sooner
than later, that's not happening," said Joseph LaVorgna, chief
economist for the Americas at Natixis in New York.
"There is no inflation coming on the labor side. The economy
is booming, and the labor market recovery is still ongoing."
MSCI's benchmark for global equity markets .MIWD00000PUS
rose 1.02% to 711.29. Europe's broad FTSEurofirst 300 index
.FTEU3 added 0.84% to close at 1,712.4. Both indexes set new
highs.
On Wall Street, the Dow Industrials and S&P 500 hit new
peaks. The Dow Jones Industrial Average .DJI rose 0.45%, the
S&P 500 .SPX gained 0.79% and the Nasdaq Composite .IXIC
added 1.32%, as low rates benefit high-growth technology firms.
Overnight in Asia, MSCI's broadest index of Asia-Pacific
shares outside Japan .MIAPJ0000PUS rose about 0.4%, while
Japan's Nikkei .N225 gained about 0.2%. Chinese blue chips
.CSI300 closed 1.3% lower on the day.
MSCI's emerging market currency index .MIEM00000CUS sailed
to a new record high, lifted by the weaker dollar =USD after
the U.S. jobs data.
"The market expectation of super-high rates and a squeeze on
inflation is going to go down by the wayside, and that obviously
means more liquidity from the Fed," said Boris Schlossberg,
managing director of FX strategy at BK Asset Management.
"U.S. interest rates will stay at ultra-low levels for quite
a while and that is going to keep the pressure on the dollar."
The dollar index =USD fell 0.704%, with the euro EUR= up
0.81% to $1.2162. The Japanese yen strengthened 0.51% versus the
greenback at 108.51 per dollar.
Higher-rated euro zone bond yields dipped after the U.S.
employment data missed expectations. Euro area benchmark German
10-year yields reversed earlier gains and were trading flat at
-0.218%.
The 10-year U.S. Treasury US10YT=RR yield rose 0.5 basis
points to 1.5664%.
Oil prices were little changed as the COVID-19 crisis in
India worsened, but prices were set for a weekly gain against
the backdrop of optimism over a global economic recovery.
Brent crude futures LCOc1 rose $0.14 to $68.23 a barrel.
U.S. crude futures CLc1 gained $0.07 to $64.78 a barrel.
Spot gold prices XAU= rose $16.63 to $1,831.81 an ounce.
Aluminum prices approached levels last seen in 2018 and
copper CMCU3 hit an all-time high as investors bet on a rapid
global recovery from the pandemic, led by the United States.
MET/L Iron ore futures also vaulted to a record high.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Emerging markets http://tmsnrt.rs/2ihRugV
Global asset performance http://tmsnrt.rs/2yaDPgn
U.S. non-farm payrolls https://tmsnrt.rs/3eZrWAB
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>