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

(Adds U.S. market close)
* 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 jumped on Friday after data showed U.S. job
growth increased by the most in 10 months in November, putting
to rest recession fears and briefly taking the spotlight off
contentious U.S.-China trade talks.
U.S. Treasury yields rose, while gold slipped more than 1%,
reflecting a rebound in investor appetite for risk as U.S.
unemployment dipped to 3.5%, the lowest in nearly half a
century.
Stocks on Wall Street neared record highs, with the
benchmark S&P 500 closing within 0.24% of its peak set nine days
ago. MSCI's all-country world index, a global benchmark, closed
less than 3 points shy of its all-time high of 550.63.
The stronger-than-expected U.S. Labor Department data showed
steady wage gains remained near their strongest in a decade,
suggesting consumers will continue to drive the longest economic
expansion in U.S. history, now in its 11th year. The improving data would appear to validate the U.S. Federal
Reserve's decision in October to signal, after three interest
rate cuts this year, that no more are needed for now.
"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%, closing at 548.12. The week ended on a positive
note after stocks swung wildly on conflicting remarks regarding
progress in U.S.-China trade negotiations.
European equities rallied, with the pan-regional STOXX 600
index .STOXX rising 1.16%. Most major regional indices closed
more than 1% higher.
Shares on Wall Street rose as the jobs 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 337.27 points,
or 1.22%, to 28,015.06. The S&P 500 .SPX gained 28.48 points,
or 0.91%, to 3,145.91 and the Nasdaq Composite .IXIC added
85.83 points, or 1%, to 8,656.53.
The dollar gained after weaker-than-expected U.S. data on
manufacturing and the service sector earlier in the week helped
drive five straight days of losses.
The dollar index .DXY rose 0.29%, with the euro EUR=
down 0.41% to $1.1056. The Japanese yen JPY= strengthened
0.18% versus the greenback at 108.57 per dollar.
Analysts said the jobs report showed underlying U.S.
economic strength and offset mixed signals from other recent
data.
"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.
Top White House economic adviser Larry Kudlow said the Dec.
15 deadline is still in place but President Donald Trump likes
where trade talks with China are going. China said on Friday it would waive import tariffs for some
soybeans and pork shipments from the United States. The gesture aimed at concluding 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 13/32
in price to yield 1.8398%.
Germany's 10-year Bund yield DE10YT=RR rose to -0.273%
before paring some gains to trade at -0.291% - basically flat
for the day.
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 settled up $1.00 at $64.39 a barrel,
while West Texas Intermediate oil futures CLc1 rose 77 cents
to settle at $59.20 a barrel.
U.S. gold futures GCcv1 settled down 1.2% at $1,465.10 an
ounce.