(Adds close of European markets, oil settlement)
* Wall Street gains on robust U.S. 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 sharp
decline and global equity markets rose on Friday after a robust
U.S. jobs report drove home the strength of the world's biggest
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.
Expectations the U.S. central bank will hike rates next week
rose to 92 percent after the jobs report, according to Thomson
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, after a meeting on
Thursday, will tighten policy in March 2018.
The ECB indicated less urgency for more policy action and
signaled an optimistic economic outlook for the euro zone.
The FTSEurofirst 300 index of leading European
companies trimmed gains to close down 0.01 percent to 1,470.53
as growing talk of ECB tightening hit utilities and
MSCI's all-country world stock index rose
On Wall Street, the Dow Jones Industrial Average rose
38.23 points, or 0.18 percent, to 20,896.42. The S&P 500
gained 5.56 points, or 0.24 percent, to 2,370.43 and the Nasdaq
Composite added 16.46 points, or 0.28 percent, to
Bond yields soared on a report that said the ECB is
preparing for a gradual phasing out of its stimulus measures,
according to two sources familiar with the discussion.
Oil prices fell further on reports of heavy oversupply
despite production cuts by the Organization of the Petroleum
Brent crude oil settled down 82 cents at $51.37 a
barrel, while U.S. crude fell 79 cents to settle at
U.S. crude has slumped nearly 9 percent since Tuesday's
close in its biggest three-day decline since February 2016.
Analysts said they expected a period of market consolidation
after this week's heavy declines, but another selloff 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 rate hikes in the United States and eventually in
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 0.496 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 1.03 percent to $1.0684.
The dollar index, which tracks the greenback against
six major world currencies, fell 0.53 percent to 101.310, its
lowest in nearly a week.
U.S. Treasury yields fell as benchmark yields receded from
12-week highs after the jobs data came in stronger than
consensus forecasts but fell short of the most optimistic views.
10-year Treasuries rose 5/32 in price, pushing
yields down to 2.582 percent.
(Reporting by Herbert Lash; Editing by James Dalgleish and