GLOBAL MARKETS-Wall St jumps, dollar gains after U.S. jobs report

(Adds oil settlement prices)
* Wall St rallies as jobs data points to strong economy
* Dollar rebounds, gold hits two-week high on jobs data
* Oil drops after OPEC maintains output despite oversupply

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
output 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 for the first
time in nearly a decade at a two-day meeting that ends Dec. 16.
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," said Chris Gaffney, president of EverBank
World Markets in St. Louis.
U.S. stocks rallied, with the Dow industrials rising 2
percent, its biggest gain in three months. The S&P 500 and
Nasdaq rose just as much, as nine of the 10 major S&P 500
sectors climbed but the energy index .SPNY fell.
MSCI's all-country world stock index .MIWD00000PUS gained
0.68 percent.
The Dow Jones industrial average .DJI jumped 346.91
points, or 1.98 percent, to 17,824.58. The S&P 500 .SPX gained
39.13 points, or 1.91 percent, to 2,088.75 and the Nasdaq
Composite .IXIC added 98.09 points, or 1.95 percent, to
5,135.62.
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," Aguilar 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 its lowest level in almost three weeks.
Brent crude oil futures LCOc1 settled down 84 cents to
$43.00 a barrel. U.S. crude futures CLc1 dropped $1.11 to
settle at $39.97 a barrel, just below the key price level of $40
that has been a major battleground for traders.
The dollar JPY= was last up 0.51 percent at 123.21 yen,
while the euro EUR= slid 0.63 percent against the dollar to
$1.0869. The dollar index .DXY , which measures the greenback
against a basket of six major rivals, was last up 0.75 percent
at 98.355 .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
14/32 in price to yield 2.2764 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 .