GLOBAL MARKETS-Global share markets rise, bonds fall on U.S. jobs data

* Updates prices to midday U.S. trading

* Global share markets near record highs

* U.S nonfarm payrolls rise 850,000 in June

* Crude mixed after delay in OPEC+ meeting

* Gold rises as dollar pulls back after U.S. jobs data

NEW YORK, July 2 (Reuters) - Global stock markets rose on Friday on a better-than-expected U.S. monthly jobs report that signaled the world’s largest economy ended the second quarter with strong growth momentum, while U.S. bond prices fell on investor worries over the Federal Reserve’s response.

Data showed U.S. job growth accelerated in June as nonfarm payrolls increased by 850,000 jobs after rising by 583,000 in May, although the unemployment rate rose to 5.9% from 5.8% the previous month. Economists polled by Reuters had forecast payrolls advancing by 700,000 jobs.

The MSCI All Country World index gained 0.31%, while the pan-European STOXX 600 index rose 0.26%. On Wall Street, the S&P 500 and Nasdaq hit record highs.

“For capital markets, equities and bonds, this was a Goldilocks report,” said Darrell Cronk, chief investment officer at Wells Fargo wealth and investment management. “This was perfect. There were enough jobs that you’d want to see but not so many that it concerns people that the Fed may have to act sooner.”

Still, gold edged higher, after having jumped by much as 1% earlier in the session, on a weakened dollar as investors weighed prospects that Fed policy would tighten following the jobs report.

The Dow Jones Industrial Average rose 146.4 points, or 0.42%, the S&P 500 gained 25.21 points, or 0.58%, and the Nasdaq Composite added 79.16 points, or 0.55%.

Prices for U.S. government 10-year notes fell to yield 1.43%. Euro zone government bond yields fell, as investor fears over the rise in COVID-19 cases beat the strong U.S. economic data. Germany’s 10-year bond yield, the euro zone benchmark, dropped to -0.24%, its lowest since mid-June.

The dollar slipped from a three-month high, weighed down by some of the weaker details of the U.S. nonfarm payrolls report.

U.S. employment remains about 6.8 million jobs below its peak in February 2020. There are a record 9.3 million job openings.

The dollar index fell 0.161 point, or 0.17%, to 92.436.

The Japanese yen was last down 0.24%, at $111.2300.

While the prospects of a strong economic recovery underpin equity markets, investors remain nervous that a sharp recovery from the pandemic could boost inflation to an uncomfortable level for the Fed.

Former U.S. Treasury Secretary Lawrence Summers has said massive U.S. fiscal spending will set off inflationary pressures of a kind not seen in a generation. But others argue that until wage pressures return in force, talk about a return to 1970s-style inflation is just that.

Spot gold prices rose $4.71 or 0.27%, to $1,781.31 an ounce.

Oil prices edged lower after OPEC+ ministers delayed an output policy meeting, with sources saying the United Arab Emirates had balked at proposals that included raising supply by 2 million barrels per day by the end of the year.

Brent crude was last up $0.04, or up 0.05%, at $75.88 a barrel. U.S. crude was last down $0.36, or down 0.48%, at $74.87 per barrel.

Reporting by Huw Jones in London and Elizabeth Dilts Marshall in New York; editing by Jonathan Oatis and Dan Grebler