GLOBAL MARKETS-U.S. stocks jump, dollar gains after U.S. jobs report

(Adds close of European bond, stock markets)
By David Gaffen and Herbert Lash
NEW YORK, Dec 4 (Reuters) - Stocks on Wall Street jumped on
Friday after strong jobs data made it almost certain the Federal
Reserve would raise interest rates in two weeks, while a
surprise move by major oil exporters to keep pumping near-record
volumes pushed crude prices down.
The dollar rose, gold rallied about 2 percent and base
metals, including copper, gained after the U.S. jobs report for
November paved the way for the Fed to raise rates at an
impending two-day meeting for the first time in nearly a decade.
The U.S. economy created 211,000 jobs in November, the U.S.
Labor Department said. September and October data was revised to
show 35,000 more jobs than previously reported.
"The numbers did not disappoint. We cleared the last hurdle
for a rate increase," Chris Gaffney, president of Everbank World
Markets in St. Louis.
U.S. stocks rallied, with the Dow industrials rising 2
percent and the S&P 500 and Nasdaq almost as much. MSCI's
all-country world stock index .MIWD00000PUS gained 0.65
percent.
The Dow Jones industrial average .DJI rose 355.87 points,
or 2.04 percent, to 17,833.54. The S&P 500 .SPX gained 38.5
points, or 1.88 percent, to 2,088.12 and the Nasdaq Composite
.IXIC added 94.36 points, or 1.87 percent, to 5,131.89.
Small tweaks to the European Central Bank's stimulus package
on Thursday, which sent markets into a tailspin, will also make
it easier for the Fed to raise rates as the euro strengthened
and the dollar weakened, said Omar Aguilar, chief investment
officer of equities at Charles Schwab (N:SCHW) Investment Management.
The weaker dollar will have less of an impact on U.S.
corporate earnings, and should bolster equity markets, he said.
"I can see from now until the end of the year moderate
gains, growing into a nice steady pace," Aquilar said.

OIL SHARES DROP
European shares ended lower, with oil stocks .SXEP falling
almost 2 percent. Members of the Organization of the Petroleum
Exporting Countries failed to agree an oil production ceiling
during a meeting in Vienna.
The pan-European FTSEurofirst 300 index .FTEU3 fell 0.34
percent to their lowest level in almost three weeks.
Brent crude oil futures LCOc1 fell 55 cents to $43.29 a
barrel. U.S. crude futures CLc1 dropped $1.04 to $40.04 a
barrel, after briefly dropping below $40.
The dollar JPY= was last up 0.47 percent at 123.17 yen,
while the euro EUR= was slid 0.69 percent against the dollar
to $1.0863. The dollar index .DXY , which measures the
greenback against a basket of six major rivals, was last up 0.82
percent at 98.422 .DXY .
The gap between 10-year U.S. and German bond yields narrowed
to its tightest in more than a month on Friday as investors bet
that a divergence in monetary policy between the Fed and the ECB
may be less stark than previously though.
The euro on Thursday saw its biggest one-day move in more
than six years in a dramatic reversal of its recent rally after
ECB President Mario Draghi surprised investors with less
monetary stimulus than markets expected.
Benchmark 10-year Treasury notes US10YT=RR were last up
19/32 in price to yield 2.2623 percent.
Yields on German 10-year yields climbed 6 basis points on
Friday, rising above 0.70 percent for the first time in
2-1/2-months DE10YT=TWEB .