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GLOBAL MARKETS-World stocks, oil drops after U.S. jobs data

Published 07/08/2011, 08:48 AM
Updated 07/08/2011, 08:52 AM

LONDON, July 8 (Reuters) - World stocks and crude oil futures fell on Friday after U.S. data showed employers hired the fewest number of workers in nine months, dashing optimism the economic recovery was regaining momentum.

Only 18,000 jobs were created last month, the U.S. non-farm payrolls report showed, far less than the 90,000 expected in a Reuters survey. The unemployment rate rose to 9.2 percent, the highest since December, from 9.1 percent in May.

The dollar dropped against the yen in response, and the euro also tumbled before trimming its losses.

U.S. stock futures extended losses, with the Dow Jones Industrial Average futures index down 0.75 percent and front month S&P contracts falling more than 1 percent after the report.

The MSCI world equity index was last 0.5 percent lower with European shares down 0.4 percent.

U.S. crude futures shed $2 to $96.67 per barrel. (Emelia Sithole-Matarise; editing by Patrick Graham)

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