* Wall St opens higher as jobs data lifts
* Euro falls 0.4 pct as rate cut talk grows
* Bundesbank cuts growth outlook, hints at recession
By Leah Schnurr
NEW YORK, Dec 7 Global shares and the U.S.
dollar pushed higher on Friday after a surprisingly strong
American jobs report for November, though a drop in consumer
sentiment kept a cap on gains in equities.
U.S. non-farm employment increased by 146,000 jobs last
month, data showed, defying expectations of a sharp pull-back
related to superstorm Sandy that hit the U.S. Northeast.
Wall Street opened modestly higher but pared gains after
data showed consumers' attitudes soured in early December
because of concerns about spending cuts and tax increases that
will be triggered in 2013 unless U.S. lawmakers can agree to a
"While it is just one measure of consumer sentiment, maybe
the constant barrage of back and forth in DC with no resolution
yet is having an impact," said Peter Boockvar, managing director
at Miller Tabak & Co in New York.
The Dow Jones industrial average gained 55.56 points,
or 0.42 percent, to 13,129.60. The Standard & Poor's 500 Index
added 3.55 points, or 0.25 percent, to 1,417.49. The
Nasdaq Composite Index edged up 1.06 points, or 0.04
percent, at 2,990.32.
The FTSEurofirst 300 index of top European shares
was up 0.2 percent, while the MSCI world equity index
was nearly flat.
The dollar soared to session peaks immediately following the
jobs data, but the momentum faded as traders parsed the details.
"The big takeaway is that Sandy did not have the impact, the
negative effect that people thought it would have," said Jacob
Oubina, senior U.S. economist at RBC Capital Markets in New
"While this was dramatically better than feared, it also was
not a breakout of the trend," he said.
Pressure was added to the euro after Germany's central bank
cut its growth outlook and pointed to risks of a recession as
the three-year-old debt crisis takes its toll on the region's
The euro fell to a session low of $1.2878 on Reuters data,
matching the low set on Nov. 28. It was last down at $1.29. The
dollar index was up 0.3 percent.
The bleak warning came just a day after the ECB slashed its
own economic forecasts for the entire 17-nation euro area next
year, while leaving its main interest rate at a record low 0.75
percent for the fifth month running.
"The discussion on interest rates is what started the slide
in the euro in the last 24 hours, and the Bundesbank report has
just compounded that," said Neil Mellor, currency strategist at
Bank of New York Mellon.
Uncertainty over whether U.S. lawmakers will agree on a deal
to avert spending cuts and tax increases was likely to continue
to keep investors on edge. Any signs of how the talks are
progressing could cause fluctuations in the markets.
Talks have come down being between Republican House Speaker
John A. Boehner and President Barack Obama, according to Capitol