GLOBAL MARKETS-Stocks rally, U.S. bond yields fall as jobs data fuels rate cut talk

* Major U.S. stock indexes up more than 1%
* Dollar drops following Labor Department report
* Oil prices rise

(Updates with early U.S. markets' activity, changes dateline,
previous LONDON)
By Caroline Valetkevitch
NEW YORK, June 7 (Reuters) - Major world stock indexes rose
and U.S. Treasury yields tumbled on Friday after a slowdown in
U.S. job growth fueled hopes of a U.S. interest rate cut, while
news the United States would give China more time to avoid a
tariff hike added to market optimism.
The U.S. dollar index dropped to its lowest since March 26
after the U.S. Labor Department's monthly report, which also
showed wages rose less than expected in May. Yields
on 10-year Treasury notes hit their lowest since September 2017.
The jobs data suggested the loss of momentum in economic
activity was spreading to the labor market, which could put
pressure on the Federal Reserve to cut rates this year.
"This is the type of read the doves will really take to, as
it supports the argument for cutting rates beyond politics or
trade issues, which were never part of the Fed's mandate to
begin with," said Mike Loewengart, vice-president of investment
strategy at E*Trade Financial in New York.
Hopes that the Fed would turn more accommodative to blunt
the impact of escalating trade tensions have helped support
stocks this week and put the S&P 500 .SPX on track for its
first weekly gain since May 3. The U.S. government on Friday said it was granting Chinese
exporters two more weeks to get their products into the United
States before increasing tariffs on those items. the White House also said its 5% tariff on Mexican imports
is still on track to for Monday. The Dow Jones Industrial Average .DJI rose 282.17 points,
or 1.1%, to 26,002.83, the S&P 500 .SPX gained 32.89 points,
or 1.16%, to 2,876.38 and the Nasdaq Composite .IXIC added
116.60 points, or 1.53%, to 7,732.15.
The pan-European STOXX 600 index .STOXX rose 1.08% and
MSCI's gauge of stocks across the globe .MIWD00000PUS gained
1.10%.
Yields on U.S. 10-year Treasury notes were 5.60 basis points
lower at 2.067% after touching 2.053% shortly after the May
payrolls report, which was their lowest since September 2017.
With trade tensions between the United States and its
trading partners still brewing, investors have been assessing
how global central banks will respond to signs of a downturn.
Traders now are betting on multiple rate cuts by the Fed
over the next 12 months.
But a cut is not guaranteed. And the potential for central
banks to disappoint markets was highlighted on Thursday, when
the European Central Bank declined to hint it would cut rates
soon. The dollar index .DXY fell 0.52%, with the euro EUR= up
0.59% to $1.1341.
In the oil market, crude prices gained amid signs that OPEC
and other producers could extend their output reduction deal.
U.S. crude CLcv1 rose 1.33% to $53.29 per barrel.
For Reuters Live Markets blog on European and UK stock
markets, please click on: LIVE/

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
World FX rates in 2019 http://tmsnrt.rs/2egbfVh
MSCI All Country Wolrd Index Market Cap http://tmsnrt.rs/2EmTD6j
Emerging markets in 2019 http://tmsnrt.rs/2ihRugV
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>