* European stocks up for third week, best in 5 months for
Asia
* Oil prices set to end week with strong gains, dollar up
* Payrolls show 242,000 jobs added, unemployment rate steady
By Anirban Nag
LONDON, March 4 (Reuters) - The U.S. dollar rose along with
stocks on Friday after data showed the labour market in the
United States was in good shape, fanning expectations the
Federal Reserve will gradually raise interest rates this year.
European and U.S. stock markets headed for their third week
of gains, with the FTSEurofirst up 1 percent and futures prices
predicting a 0.5. to 0.7 percent advance when trading starts in
New York. .EU .N
Data from the U.S. Labor Department showed nonfarm payrolls
grew by 242,000 jobs last month, beating forecasts for 190,000
new jobs. The unemployment rate held at an eight-year low of 4.9
percent, even though more people entered the job market.
The data also showed the U.S. added 30,000 more jobs in
December and January than previously reported. The only blemish
in the report was a three-cent drop in average hourly earnings,
but that was mostly because of a calendar quirk. ECONUS
"Labour market conditions are improving, but it's really a
mixed bag and should easily keep the Fed on pause. They'll
pause, but not stop, and the difference is important. I still
think we could see a hike in June, but not before then," said
Brian Jacobsen, chief portfolio strategist at Wells Fargo (NYSE:WFC) Funds
Management.
The dollar rose 0.3 percent against a basket of major
currencies .dxy as the euro fell back to $1.0940 EUR= . The
dollar was also up against the yen JPY= at 114.02 yen.
Treasury yields climbed. The yield on the three-, five- and
seven-year Treasuries were all trading near their highest in
about a month after the payrolls data. US/
Earlier, solid results for the world's largest advertiser
WPP WPP.L had dovetailed with the latest tick-up in
commodities markets and hopes for another shot of European
Central Bank stimulus next week to put Europe on track for a 3
percent weekly rise.
Oil and other commodity prices also rose, although
save-haven favourite gold remained an outlier as it consolidated
a 13-month high. GOL/
Benchmark Brent futures LCOc1 were at two-month highs of
$37.68 per barrel as they headed for a gain of 6.7 percent this
week. Iron ore .IO62-CNI=SI and copper CMCU3 both hit
four-month highs, with the latter on course for its best week in
roughly six months. MET/L