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GLOBAL MARKETS-Shares falter, dollar gains after US payrolls

Herbert Lash
Friday, 2 Nov 2012 | 2:44 PM ET

* Wall Street, crude oil retreat after strong payrolls report

* Dollar advances near 3-week high versus euro

* U.S. Treasuries fall as U.S. job growth hurts safety bid

NEW YORK, Nov 2 (Reuters) - Global stocks faltered and the dollar gained after a U.S. employment report for October surpassed expectations, but other data pointed to a mixed picture of a still-struggling recovery that may decide next week's presidential election.

The dollar climbed to a more-than-six-month peak against the yen and a three-week high versus the euro after U.S. employers stepped up hiring and the unemployment rate ticked higher as more workers renewed job hunts, a hopeful sign for the economy.

U.S. employers added 171,000 jobs last month, more than the market consensus of 125,000, and the government also said 84,000 more jobs were created in August and September than initially estimated.

But other data highlighted a mixed picture as demand for U.S. factory goods rose in September by the most in over a year, while a gauge of business investment plans showed lackluster momentum in the recovery despite a slight upward revision.

Wall Street opened higher but faltered near break-even and Brent crude retreated after the Commerce Department reported new orders for manufactured goods climbed 4.8 percent, a sharp gain driven by volatile aircraft orders.

``Good number, particularly with the upward revision to the previous month, that's always a good sign,'' said Kathy Jones, fixed-income strategist at Charles Schwab in New York.

But Jones noted that ``when you dig deeper into it, it's still not a robust number by any means. We're way short of where we need to be to bring down the unemployment rate to where the Fed would like to see, closer to 6 percent than 8 percent

The Dow Jones industrial average was down 57.83 points, or 0.44 percent, at 13,174.79. The Standard & Poor's 500 Index was down 2.96 points, or 0.21 percent, at 1,424.63. The Nasdaq Composite Index was down 9.41 points, or 0.31 percent, at 3,010.65.

In Europe, the FTSEurofirst 300 index of top European shares was up 0.25 percent at 1112.74.

The MSCI all-country equity index of world shares slipped 0.04 percent at 331.70.

Oil fell as weak European data reinforced a gloomy picture for the demand outlook. Brent crude for December fell 45 cents to $107.72 a barrel, while U.S. crude for December was down $1.41 at $85.69.

The U.S. dollar index was up 0.56 percent at 80.498, and the euro was down 0.73 percent at $1.2848.

The benchmark 10-year U.S. Treasury note was down 2/32 in price to yield 1.7348 percent.