* Stocks, dollar, crude oil fall on weak U.S. jobs data
* Recovery doubts grow on deeper-than-expected job losses
* U.S. government debt flat as profit-taking offsets data
(Updates with U.S. markets activity, changes dateline; previous LONDON)
By Herbert Lash
NEW YORK, Oct 2 (Reuters) - Global stocks, crude oil and the U.S. dollar fell on Friday after deeper-than-expected U.S. job losses reinforced worries a soft American labor market could slow the pace of economic recovery.
A slide in U.S. stocks was partially offset by positive broker comments on companies in the tech and financial sectors. U.S. Treasury prices were little changed as profit-taking was tempered by the acceleration in U.S. job losses. For details, see: [ID:nN02321933][ID:nN02323647]
Oil prices slid more than 2 percent to near $69 a barrel and copper prices hit a two-month low as the anemic September jobs data eroded confidence in consumer demand prospects. [ID:nNSIN305143] [ID:nL2116792]
The dollar dropped against major currencies. Gold erased initial losses to rise above $1,000 an ounce, reflecting a spike and subsequent retreat in the dollar as investors fretted over the disappointing Labor Department payrolls report. [ID:nL2498069]
U.S. employers cut 263,000 jobs, helping to lift the U.S. unemployment rate to a 26-year high of 9.8 percent from 9.7 percent in August. Economists surveyed by Reuters had expected a drop of 180,000.
The MSCI all-country world index <.MIWD00000PUS> fell about 1.1 percent, while pan-European and shares in Asia outside of Japan fell almost 2 percent.
"The number is going to put a real crimp on anticipation of a strong recovery," said Joseph Trevisani, senior market analyst at FX Solutions in Saddle River, New Jersey. "The number of job losses is moving in the wrong direction."
Partially offsetting the jobs gloom were U.S. tech shares,
boosted by a UBS upgrade on Apple Inc
Shortly after 1 p.m., the Dow Jones industrial average <.DJI> was down 6.27 points, or 0.07 percent, at 9,503.01. The Standard & Poor's 500 Index <.SPX> was down 1.96 points, or 0.19 percent, at 1,027.89. The Nasdaq Composite Index <.IXIC> was down 0.45 points, or 0.02 percent, at 2,057.03.
European shares hit a four-week closing low, and euro zone government bond prices rose sharply after the U.S. job losses added to concerns about the strength of economic recovery. [ID:nL2298876]
December Bund futures
The FTSEurofirst 300 <.FTEU3> index of top European shares fell 1.85 percent to close at 963.56 points.
Every sector in the DJ Stoxx 600 <.STOXX> was in the red, but banks <.SX7P> were among the top losers. Banking shares have rallied more than 150 percent since March lows.
"We've all been expecting bouts of profit taking and I think that's all it is. The economy can only deliver so much at any one time. Maybe the employment expectations were a bit too rich," said Mike Lenhoff, a strategist at Brewin Dolphin.
The benchmark 10-year U.S. Treasury note
Investors initially bought the dollar versus the euro after the release of the jobs data in a flight-to-safety bid. But dollar gains were modest and analysts suggested caution in buying the U.S. currency amid signs the recovery could stall.
The dollar was down against a basket of major currencies, with the U.S. Dollar Index <.DXY> down 0.21 percent at 77.024.
The euro
U.S. crude futures
Spot gold prices
Shares in Japan <.N225> skidded 2.5 percent with carmakers including Toyota and Nissan hurt by a slump in September U.S. car sales.
The MSCI index of Asia Pacific stocks traded outside Japan <.MIAPJ0000PUS> fell 1.6 percent.
(Reporting by Ryan Vlastelica, Gertrude Chavez-Dreyfuss and Richard Leong in New York; David Sheppard, George Matlock, Brian Gorman, Pratima Desai and Maytaal Angel in London; writing by Herbert Lash; Editing by Andrew Hay)