* Strong private payrolls growth in June -U.S. ADP report
* U.S. stocks open higher, but reverse with oil drop
* Oil prices fall as report short of expectations
* European stocks gain as Brexit fears wane
(Updates with oil, U.S. stocks fall; adds latest U.S.
Treasuries data, sterling activity)
By Dion Rabouin
NEW YORK, July 7 (Reuters) - World stocks broadly climbed as
riskier assets like equities received a bump from positive U.S.
data, though U.S. equities and long-dated Treasury yields fell
along with oil prices amid investor caution ahead of Friday's
non-farm payrolls report.
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,
but reversed course to follow oil prices lower.
The ADP national employment report showed that 172,000 jobs
were added in the private sector in June, surpassing economists'
expectation of 159,000.
In May, ADP data showed private payrolls rose 168,000, but
the government's non-farm payrolls data that month reported a
gain of only 38,000 jobs, the smallest since September 2010.
"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."
Oil prices slumped 4 percent, wiping out early gains, after
the U.S. government reported that the drop in weekly crude
stockpiles was close to analysts' forecasts, but far less than
the decline expected by market optimists. O/R
Equity markets around the world advanced, with MSCI's global
gauge of stocks .MIWD00000PUS up 0.15 percent.
The Dow Jones industrial average .DJI fell 59.72 points,
or 0.33 percent, to 17,858.9, the S&P 500 .SPX lost 5.1
points, or 0.24 percent, to 2,094.63 and the Nasdaq Composite
.IXIC added 4.72 points, or 0.1 percent, to 4,863.88.
U.S. 30-year Treasuries US30YT=RR rose 15/32 in price to
yield 2.116 percent. The 30-year note hit a record low of 2.098
percent on Wednesday. Benchmark 10-year Treasuries US10YT=RR
were little changed in price to yield 1.3866 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 fell below $1.30 against the
U.S. dollar for the first time since 1985 on Wednesday, again
turned lower. It was last down 0.3 percent to $1.2898.
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 0.65 percent lower against the yen JPY= at
100.68 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.
Brent crude LCOc1 fell $2.12 to $46.63 a barrel. U.S.
crude CLc1 dropped $2.14 to $45.29 a barrel. O/R
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
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
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>