* Strong private payrolls growth in June -U.S. ADP report
* U.S. stocks open higher, but pare gains
* European stocks gain as Brexit fears wane
* Treasury yields rise from historic lows
(Updates to U.S. trading, changes dateline, previous London)
By Dion Rabouin
NEW YORK, July 7 (Reuters) - World stocks climbed as riskier
assets like equities received a bump from a second day of
positive U.S. data and worries eased over the impact of
Britain's vote to leave the European Union, lifting the pound
off three-decade lows.
Wall Street initially opened higher as strong private sector
employment data and a drop in jobless claims pointed to a
steadying labor market ahead of the key monthly payrolls report
on Friday, but pared those gains as investors grew cautious.
The ADP national employment report showed that 172,000 jobs
were added in the private sector in June, outstripping
economists' expectation of 159,000.
On Wednesday, a report from the Institute of Supply
Management showed U.S. services activity hit a seven-month high
in June.
"Investors are marking their time ahead of the jobs data,"
said Terry Sandven, chief equities strategist at U.S. Bank
Wealth Management. "The wall of worry has been under full
construction since the May jobs data, so tomorrow's report will
either suggest that the number was an anomaly or provide
evidence of a weakening economy."
ADP's May report showed private payrolls rose 168,000, but
the government's non-farm payrolls data reported a gain of only
38,000 jobs, the lowest since September 2010.
Equity markets around the world advanced, and MSCI's global
gauge of stocks .MIWD00000PUS was up 0.25 percent.
The Dow Jones industrial average .DJI fell 7.02 points, or
0.04 percent, to 17,911.6, the S&P 500 .SPX gained 0.74
points, or 0.04 percent, to 2,100.47 and the Nasdaq Composite
.IXIC added 13.70 points, or 0.28 percent, to 4,872.86.
The strong U.S. private payrolls data also boosted U.S.
Treasury yields, with benchmark and long-dated yields edging up
from record lows hit Wednesday.
U.S. 30-year Treasuries US30YT=RR were last down 3/32 in
price to yield 2.159 percent after hitting a record low of 2.098
percent on Wednesday. Benchmark 10-year Treasuries US10YT=RR
were last down 5/32 in price to yield 1.413 percent after
touching a record low of 1.321 percent Wednesday. US/
European markets gained, ending a three-day slide with
London's FTSE .FTSE up 1.09 percent. The CAC in Paris .FCHI
rose 0.8 percent and Germany's DAX .GDAXI was 0.49 percent
higher. The pan-European FTSE 300 .FTEU3 gained 1.04 percent.
The British pound GBP= , which had fallen below $1.30
against the U.S. dollar for the first time since 1985 on
Wednesday, rose above that mark in early trading. It was last up
slightly at $1.2936.
Sterling is down more than 14 percent since Britain voted to
exit the European Union on June 23, with some analysts expecting
it to drop to $1.20 in coming months as the Bank of England
prepares to ease monetary policy.
The dollar was 0.55 percent lower against the yen JPY= at
100.75 yen, holding above its trough of 99 yen hit on June 24,
the day after the British vote.
Traders said even positive data from Friday's jobs report
was unlikely to sway the Federal Reserve to hike interest rates
this year given global growth concerns, furthering boosting the
yen.
The strong yen and Brexit fears have battered Japanese
markets, with Japan's Nikkei .N225 stock index falling 0.67
percent Thursday to drop for a third straight day.
Oil prices fell, reversing earlier gains, after the Energy
Information Administration showed a smaller-than-expected drop
in weekly U.S. crude stockpiles.
Brent crude LCOc1 fell $1.04 to $48.38 a barrel. U.S.
crude CLc1 dropped 98 cents to $47.01 a barrel. O/R
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Brexit currency reactions http://tmsnrt.rs/29gU3MP
Japan bond yields http://tmsnrt.rs/1RieEON
Global assets in 2016 http://reut.rs/1WAiOSC
Currencies in 2016 http://link.reuters.com/tak27s
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