GLOBAL MARKETS-Stocks rally, dollar gains on robust U.S. jobs data

(Adds U.S. market open, byline, changes dateline; previous
LONDON)
* Strong U.S. job growth calms recession fears
* Gold falls, dollar gains on robust jobs data
* Treasury, Bund yields rise on report
* Oil rises as OPEC+ agree to production cuts

By Herbert Lash
NEW YORK, Dec 6 (Reuters) - The dollar rose and global
equity markets rallied on Friday after data showed U.S. job
growth increased by the most in 10 months in November, putting
to rest fears of recession and briefly taking the spotlight off
the U.S.-China trade talks.
U.S. Treasury and German bund yields jumped, while gold
slipped as much as 1%, reflecting increased investor appetite
for risk.
The stronger-than-expected Labor Department data showed
steady wage gains and the unemployment rate falling to 3.5%,
suggesting consumers will continue to drive the longest economic
expansion in U.S. history, now in its 11th year. The improving data validates the Federal Reserve's decision
last month to cut interest rates for the third time this year,
while signaling a pause in the easing cycle that started in
July, when it reduced borrowing costs for the first time since
2008.
"This certainly contributes to the idea that the U.S.
economy is doing better than most folks would give it credit
for," said Michael Arone, chief investment strategist at State
Street Global Advisors in Boston.
"This was a very solid report and should put those fears of
recession firmly in the rear view," he said.
MSCI's gauge of stocks across the globe .MIWD00000PUS
gained 0.76%.
European equities rallied, with the pan-regional STOXX 600
index .STOXX rising 1.16%.
Shares on Wall Street rose as the report bolstered the
consensus view that consumer strength will support the U.S.
economy and in turn, equities.
The Dow Jones Industrial Average .DJI rose 305.08 points,
or 1.1%, to 27,982.87. The S&P 500 .SPX gained 29.32 points,
or 0.94%, to 3,146.75 and the Nasdaq Composite .IXIC added
79.98 points, or 0.93%, to 8,650.68.
The dollar gained after five straight days of losses on
weaker-than-expected U.S. data on manufacturing and the service
sector, which indicated slowing economic growth.
The dollar index .DXY rose 0.39%, with the euro EUR=
down 0.5% to $1.1046. The Japanese yen JPY= strengthened 0.05%
versus the greenback at 108.71 per dollar.
Analysts said the jobs report showed underlying strength in
the U.S. economy and offset mixed signals from other economic
data earlier in the week.
"This is going to throw a wrench into the argument that the
economy is slowing down," said Andre Bakhos, managing director
at New Vines Capital LLC in Bernardsville, New Jersey.
"Companies don't hire if the economy is slowing down.
Companies go the other way," he said.
The unemployment report provided a respite from persistent
pessimism on the economy and nagging doubts about the prolonged
U.S.-China trade war, which faces a looming hurdle with a new
round of U.S. tariffs scheduled to take effect on Dec. 15.
Most economic data will continue to take a back seat to the
U.S.-China trade negotiations, which will remain the driver of
market action for most of December, Arone said.
China said on Friday it will waive import tariffs for some
soybeans and pork shipments from the United States. The gesture aimed to help conclude a "phase one" or interim
deal to de-escalate the 17-month trade war that has roiled
financial markets, disrupted supply chains and weighed on global
economic growth.
China stocks posted their biggest weekly advance in nearly
two months, with blue-chips .CSI300 up 0.6%.
Benchmark 10-year U.S. Treasury notes US10YT=RR fell 12/32
in price to yield 1.8346%.
Germany's 10-year Bund yield DE10YT=RR rose to -0.273%
before paring some gains to trade at -0.298%.
Oil prices rose sharply after the Organization of the
Petroleum Exporting Countries and its allies agreed to extend
output cuts by 500,000 barrels per day in early 2020.
Brent futures LCOc1 rose 80 cents to $64.19 a barrel while
West Texas Intermediate oil futures CLc1 rose 45 cents to
$58.88 a barrel.