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

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

By Ritvik Carvalho
LONDON, Oct 7 (Reuters) - Stocks edged up globally on Monday
as broadly positive U.S. jobs data from last week 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 gained despite falling German industrial
orders data, which underscored concerns about a looming
recession in Europe's largest economy. The pan-European STOXX
600 .STOXX was up 0.54% by midday in London. .EU
Stocks worldwide took a battering last week, falling to
their lowest in more than 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 0.06%. .MIAPJ0000PUS
Japan's Nikkei stock index .N225 opened higher but
reversed course and declined 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, moved into positive territory, up 0.1%
after hovering between flat and negative for most of morning
trade.
Germany's DAX .GDAXI rose 0.5%, shrugging off data that
showed industrial orders fell slightly more than expected in
August. Morale among investors in the euro zone dropped in October
to its lowest 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 arising from a
whistleblower's allegations that Trump leveraged $400 million in
aid to secure a promise from Ukraine's president to investigate
Trumps's political rival Joe Biden will continue this week.
Several U.S. diplomats will head to Capitol Hill for closed-door
testimony.
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 0.2% lower. ESc1 NQc1 .N
In currencies, the dollar was 0.1% higher against a basket
of peers. The euro was flat at $1.0983 EUR=EBS . Sterling was
lower on investors fears that Britain and the European Union are
no closer to agreeing a Brexit withdrawal deal. GBP/
Euro zone government bond yields fell slightly as investors
weighed signs of a resilient U.S. economy against concerns the
U.S.-Sino trade negotiations could fail.
There was some outperformance in Portugal's bond market
following a ratings upgrade on Friday and a weekend
election. GVD/EUR
Yields in the biggest economies of the euro area were
slightly lower, with the German 10-year Bund yield falling 1.1
basis points (bps) to -0.598% DE10YT=RR .
Oil prices rose. Brent crude futures were higher by 1% at
$58.93 per barrel, while West Texas Intermediate (WTI) crude
futures were 1.2% higher at $53.46. O/R
Spot gold XAU= fell 0.35% to $1,499.20 per ounce. GOL/