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CORRECTED-GLOBAL MARKETS-Tepid payrolls sink dollar, boost Wall Street futures

Published 03/07/2015, 02:07 am
CORRECTED-GLOBAL MARKETS-Tepid payrolls sink dollar, boost Wall Street futures
DXY
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(Corrects June payrolls forecast to 230,000 from 232,000)

* Jobs data pushes down dollar, yields, lifts stocks

* Europe waits for Greek vote, Spain borrowing costs rise

* Gold also dips after U.S. payrolls

* payrolls increase by 223,000, below forecast of 230,000

By Marc Jones

LONDON, July 2 (Reuters) - Weaker-than-expected U.S. jobs figures knocked the dollar off a three-week high on Thursday and gave a lift to Wall Street stock futures as the chances of a U.S. rate hike as soon as September took a hit.

Non-farm payrolls increased by 223,000 in June, slightly below the 230,000 forecast of economists polled by Reuters.

April and May data was also revised to show 60,000 fewer jobs were added than previously reported, while the figures showed 432,000 people dropping out of the labour force taking the U.S. unemployment rate to its lowest since April 2008. ID:nL1N0ZI0OH

With trades on a September Fed hike coming off in favour of a December move, the dollar sagged against the world's major currencies .DXY to leave it at a session low against the euro EUR= , the yen JPY= and the Swiss franc CHF=

Gold fell too, hitting a 3-1/2 month low of $1,157 an ounce, while U.S. stock futures extended gains to point a 0.3-0.4 percent rise for the main Wall Street markets when they reopen. 1YMc1 ESc1 NQc1

"All that means that this is a market-friendly number," said Mark Luschini, Chief Investment Strategist at Janney Montgomery Scott in Philadelphia.

"It doesn't warrant the Fed moving any sooner than previously thought, while it is still good enough to suggest that the economy's pattern of growth remains intact."

In addition, average hourly earnings were unchanged, taking the year-on-year increase to a tepid 2.0 percent.

Reflecting the lower chance of a Fed hike in the coming few months, U.S. treasury yields eased, taking German Bunds, Europe's benchmark government bond, with them. GVD/

Europe continued to focus on Greece's troubles though. Earlier Spain, another of the euro zone's heavily indebted countries, saw its 10-year borrowing costs hit their highest for 10 months at a debt auction.

The euro EUR= was largely unaffected however and had pushed back up to $1.11 by 1315 GMT knowing the U.S. jobs figures had cooled Fed hike expectations.

(Editing by Alison Williams)

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