GLOBAL MARKETS-Strong U.S. jobs data pushes dollar, shares up, bonds dip

Fri May 2, 2014 9:11am EDT

* Payrolls 288,000 vs forecast 210,000, unemployment 6.3 pct
vs forecast 6.6 pct
    * Dollar up, Wall Street futures, European shares rise
    * Russia, Ukraine crisis keeps caution high

    By Anirban Nag
    LONDON, May 2 (Reuters) - A strong pace of U.S. jobs growth
pushed Wall Street stock futures and the dollar higher on
Friday, knocking bonds lower as it helped relieve some anxiety
among investors also watching the escalating unrest in Ukraine.
    Non-farm payrolls data showed the U.S. economy added 288,000
jobs in April, beating a 210,000 consensus forecast and
bolstering the view that the world's biggest economy is
regaining pace after bad weather hit growth early in the year.
    U.S. short term interest rate futures showed traders pricing
in a first hike by the Federal Reserve in June 2015. Before the
jobs report they had seen only about a 47 percent chance of that
happening and thought the Fed was much more likely to wait until
July next year to start raising rates.
    "On the face of it, these numbers are definitely good and a
confirmation that all the weather-related distortions are a
thing of the past," said Ian Gunner, portfolio manager at Altana
Hard Currency Fund.
    "But I would wait for another month of solid job gains to
see if this is really a one-off or a trend."
    Stock futures prices pointed to a rise of around 0.1
percent for Wall Street when trading resumes. European shares
 pared earlier losses and turned marginally positive
after the data.
    In the currency market, the dollar extended gains
against both the yen and euro, while U.S. Treasury
yields rose, reflecting the view that the Fed is likely to
continue winding down its stimulus.
    Among commodities, oil remained top-heavy after Thursday's
slip following disappointing Chinese economic data and a survey
showing U.S. crude stocks rose last week to their highest level
since 1982.
    Gold slipped and was down on the week, while copper,
 whose industrial uses make it sensitive to growth
expectations, was flat but set for its biggest weekly drop in
seven as concerns about China's economy continued to nag.

 (Additional reporting by Marc Jones in London; Editing by
Catherine Evans)
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California state worker Albert Jagow (L) goes over his retirement options with Calpers Retirement Program Specialist JeanAnn Kirkpatrick at the Calpers regional office in Sacramento, California October 21, 2009. Calpers, the largest U.S. public pension fund, manages retirement benefits for more than 1.6 million people, with assets comparable in value to the entire GDP of Israel. The Calpers investment portfolio had a historic drop in value, going from a peak of $250 billion in the fall of 2007 to $167 billion in March 2009, a loss of about a third during that period. It is now around $200 billion. REUTERS/Max Whittaker   (UNITED STATES) - RTXPWOZ

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