* Stocks rise on outsized U.S. jobs gains
* U.S. added 287,000 jobs in June
* U.S. stocks recover Brexit losses
* Jobs report seen as unlikely to boost chances of Fed rate
hike
(New throughout, updates prices and market activity to European
market close, adds oil market activity)
By Dion Rabouin
NEW YORK, July 8 (Reuters) - Wall Street recovered rose on
Friday, recovering all the losses sustained after Britain's
surprise vote to leave the European Union, and stocks around the
globe also jumped after data showed U.S. job growth in June
accelerated more rapidly than even the most optimistic
forecasts.
The U.S. economy added 287,000 jobs last month, according to
the Labor Department, smashing the consensus forecast of
175,000. It was the highest total in eight months, wiping out
expectations that the Federal Reserve might cut interest rates
in the coming months.
U.S. equity markets advanced on the news, led higher by the
financial sector.
The Dow Jones industrial average .DJI rose 225.55 points,
or 1.26 percent, to 18,121.43, the S&P 500 .SPX gained 28.49
points, or 1.36 percent, to 2,126.39 and the Nasdaq Composite
.IXIC added 73.35 points, or 1.5 percent, to 4,950.16.
"What this report does is it assuages fears about the
economy losing momentum. That's been weighing on the minds of
investors," said Quincy Krosby, market strategist at Prudential (LON:PRU)
Financial in Newark, New Jersey.
"In order for the market to keep going higher, there needs
to be assurance that the economy is on solid footing and that
the most important component of the economy, which is the U.S.
consumer, is still gaining."
European stocks also surged after the data's release, with
Germany's DAX stock index .GDAXI rising 2.24 percent to lead
the region's bourses. Europe's FTSEuroFirst 300 index of top
shares rose 1.49 percent .FTEU3 .
MSCI's all-country world stock index .MIWD00000PUS rose 1
percent.
Oil prices initially rose more than 1 percent after the
strong jobs data and on worries about new attacks on Nigerian
oil infrastructure.
Brent crude futures LCOc1 were up 0.8 percent, at $46.78
per barrel. U.S. crude futures rose 0.55 percent to $45.39 a
barrel.
Still, the upbeat U.S. jobs report failed to significantly
alter the longer-term expectation that the Federal Reserve will
keep U.S. interest rates on hold for at least a year, according
to Fed funds futures prices.
Investors see a zero percent chance the Fed will raise rates
at this month's policy meeting on July 27, and less than a 25
percent chance of a rate hike before year-end, according to CME
Group's FedWatch tool.
Investors remain worried about the world economy following
the Brexit vote and a deepening crisis in Italian banks.
"Even though the Fed's dual mandate involves full employment
and price stability, they're looking far beyond these two
parameters to figure out what they're going to be doing," said
Subadra Rajappa, head of U.S. rates strategy at Societe Generale (PA:SOGN)
in New York.
"They're much more in risk management mode, much more
concerned about developments overseas and it's not clear how
global factors will affect the U.S. economy."
The 10-year U.S. Treasury yield rose 3/32 in price to yield
1.376 percent US10YT=RR .
Low expectations for a Fed rate hike also pushed the U.S.
dollar down against the yen JPY= . While the dollar rose
immediately after the jobs report, climbing to a two-week high,
those gains evaporated and the dollar was last down 0.2 percent
to 100.53 yen.
The first measure of UK consumer confidence since the Brexit
referendum two weeks ago showed the joint-steepest decline in
morale since 1994, according to research company GfK on Friday.