GLOBAL MARKETS-Dollar falls, while stocks, bond prices climb on U.S. data
* Euro rises, dollar slips against yen on jobs data * Stocks up after briefly retreating on Putin comments over Syria aid * Bond prices rally By Caroline Valetkevitch NEW YORK, Sept 6 (Reuters) - The dollar weakened on Friday while stocks and bond prices jumped after a report showed U.S. jobs growth was less than expected in August, adding to uncertainty over when the Federal Reserve will begin to trim its massive bond-buying program. Gold prices also gained after the payrolls data. Wall Street stocks briefly retreated in tandem with European shares after Russian President Vladimir Putin pledged to assist Syria. However, Putin made clear that Russia did not want to be sucked into a war over Syria. The weaker-than-expected nonfarm payrolls number added to signs that economic growth may have slowed a bit in the third quarter. The data also showed the jobless rate hit a 4-1/2-year low as many Americans gave up the search for work. "Today's data, in combination with Syrian uncertainties, are likely to keep the U.S. Fed on the sidelines for now," said Douglas Borthwick, managing director at Chapdelaine Foreign Exchange in New York. The Fed has said it would begin to reduce its $85 billion a month in bond purchases depending on progress in the labor market. Policymakers were widely expected to make an announcement on the bond program when they meet Sept. 17-18. Kansas City Fed President Esther George, a consistent hawk who has argued for a tapering in bond purchases all year, said Friday the Fed should begin reducing monthly bond purchases at a meeting later this month in order to set monetary policy on a course for "gradual and predictable" normalization. The dollar fell from a seven-week high against the euro. The euro was last up 0.4 percent at $1.3168 and the dollar was down 1.2 percent against the yen at 98.89 yen. The dollar index was at 82.184, down 0.5 percent, not far from a recent seven-week peak of 82.671. On Wall Street, the Dow Jones industrial average was up 47.26 points, or 0.32 percent, at 14,984.74. The Standard & Poor's 500 Index was up 6.37 points, or 0.38 percent, at 1,661.45. The Nasdaq Composite Index was up 10.30 points, or 0.28 percent, at 3,669.08. MSCI's world share index, which tracks 45 countries, was up 0.6 percent, while the FTSEurofirst 300 ended up 0.5 percent after briefly trading lower on the Syria headlines. BOND RALLY The U.S. bond market rallied, with benchmark yields falling back below 3 percent as the jobs report left traders to question whether the Fed might pare its bond purchases soon. Benchmark 10-year Treasury notes last traded up 21/32 in price, after surging over 1 point moments after the payrolls data. Their yield fell to as low as 2.864 percent before retracing back to 2.917 percent. The 10-year yield had touched 3.007 percent overnight, a level not seen since July 2011. Gold, which has benefited from ultra-cheap central bank liquidity, climbed after the data. Gold was up 1.5 percent at $1,386.74 an ounce. U.S. crude oil futures were on track for their largest daily percentage gain in more than two weeks as investors rushed to buy amid concerns about a possible military strike against Syria. The U.S. Congress will vote next week on President Barack Obama's proposal to launch a missile strike against Syria. Brent crude oil futures for October delivery were trading 96 cents higher at $116.22 per barrel, while U.S. crude oil for October delivery was last trading $2.03 per barrel higher at $110.40.
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