(Updates to U.S. markets open; changes byline, dateline;
* Wall Street gains on robust jobs data
* Crude falls anew as glut worries persist
* Euro zone bank shares rise on ECB expectations
By Herbert Lash
NEW YORK, March 10 Crude oil resumed a downward
drift and global equity markets rose on Friday after a robust
U.S. jobs report drove home the strength of the American economy
and set the stage for the Federal Reserve to raise interest
rates next week.
U.S. employment increased more than expected in February and
wages rose steadily, providing the Fed a green light to raise
rates at a policy-setting meeting on March 15.
Nonfarm payrolls rose by 235,000 jobs as the construction
sector recorded its largest gain in nearly a decade due to
unseasonably warm weather, the U.S. Labor Department said.
"There's nothing here that's going to keep the Fed from
hiking interest rates next week," said Heidi Learner, chief
economist at Savills Studley, a unit of Savills Plc in New York.
The perceived chances that the U.S. central bank will hike
rates next week rose to 92 percent after the jobs report,
according to Thomson Reuters data.
Shares on Wall Street posted broad-based gains while banking
stocks in the euro zone hit their highest in more than a year on
expectations the European Central Bank will tighten policy in
2018, if not before.
The ECB on Thursday indicated less urgency for more policy
action and signaled an optimistic outlook for the euro zone
The FTSEurofirst 300 index of leading European
companies rose 0.08 percent to 1,471.88. MSCI's all-country
world stock index rose 0.46 percent.
On Wall Street, the Dow Jones Industrial Average rose
10.1 points, or 0.05 percent, to 20,868.29. The S&P 500
gained 3.79 points, or 0.16 percent, to 2,368.66 and the Nasdaq
Composite added 15.07 points, or 0.26 percent, to
Oil prices fell further on reports of heavy oversupply in
spite of production cuts by the Organization of the Petroleum
Brent crude oil fell 52 cents at $51.67 a barrel,
while U.S. crude was 45 cents lower at $48.83.
Analysts said they expected a period of market consolidation
after this week's heavy declines, but another sell-off is
possible if investors are forced to sell loss-making contracts.
"The market remains overwhelmingly long and any further
weakness will force additional reductions," Saxo Bank's head of
commodity strategy, Ole Hansen, told Reuters Global Oil Forum.
The euro zone's main gauge of borrowing costs was set for
its biggest fortnightly rise in nearly two years as investors
prepared for U.S. rate hikes and eventually in Europe.
In sovereign debt markets, yields on Germany's 10-year bond
- an indication of the rate at which a country can borrow on
financial markets - climbed 7 basis points to 0.49 percent
, a level last seen in January 2016 as funds
ditched safe-haven German bonds.
"With the global economy now in firm recovery, central banks
are gradually unplugging life support, a reality bond investors
still cannot bear watching," said Societe Generale strategist
The dollar fell after the U.S. jobs report showed wages rose
less than expected, tempering expectations for a spate of future
interest rate increases.
The euro was up 0.85 percent to $1.0665.
The dollar index, which tracks the greenback against
six major world currencies, fell 0.42 percent to 101.420, its
lowest in nearly a week.
The dollar also fell to its lowest in nearly a week against
the Swiss franc, dipping to 1.0083 francs.
(Reporting by Herbert Lash; Editing by James Dalgleish)