* U.S. April payrolls miss forecast
* MSCI all-country index posts worst week since mid-February
* Longer-dated yields rise on U.S. wage growth data
* Oil prices edge higher (Updates to U.S. markets close)
By Sam Forgione
NEW YORK, May 6 (Reuters) - U.S. stocks ended slightly higher on Friday as investors warmed to data showing U.S. wage growth in April despite weaker-than-expected jobs growth, while the wages data also pushed longer-dated Treasury yields higher.
Nonfarm payrolls increased by 160,000 jobs last month, far below the 202,000 economists polled by Reuters had forecast on average and the fewest jobs added in seven months. The number cast doubts on whether the Federal Reserve will raise interest rates by the end of the year. hourly earnings, however, rose 0.3 percent in April after a weak reading for March.
U.S. interest rates futures suggested traders see a 10-percent chance of the Fed raising rates at its June 14-15 meeting FFM6 , down from 14 percent on Thursday, Reuters data showed. FEDWATCH
U.S. shares edged up on the day but posted losses for the week, while European shares posted their biggest weekly percentage decline since early February. Hedge fund Man Group EMG.L was among the worst performers in Europe, down 8.6 percent after Citigroup (NYSE:C) cut its rating on the stock to "sell" from "buy."
Longer-dated Treasury yields rose on signs of wage growth, with 30-year yields last at 2.622 percent after dropping to a more than two-week low of 2.568 percent. market was moving into oversold territory and poised for a bounce," said Quincy Krosby, market strategist at Prudential Financial (NYSE:PRU) in Newark, New Jersey. "It's the market in essence looking at the report, and looking at the wage growth in the report, which suggests that the foundation for consumer spending remains intact."
MSCI's all-country world equity index .MIWD00000PUS was down 0.08 points or 0.02 percent at 395.34, and posted its biggest weekly percentage decline since early February.
The Dow Jones industrial average .DJI rose 79.79 points, or 0.45 percent, to 17,740.5, the S&P 500 .SPX gained 6.55 points, or 0.32 percent, to 2,057.18 and the Nasdaq Composite .IXIC added 19.06 points, or 0.4 percent, to 4,736.16.
Europe's broad FTSEurofirst 300 index .FTEU3 ended down 0.27 percent at 1,303.3. two-year US2YT=RR Treasury note yields briefly fell to their lowest levels in 12 weeks, at 0.686 percent, after the jobs report discouraged some views of a June Fed rate hike.
Oil prices edged up on Friday, supported by an early dip in the dollar and a wildfire that has shrunk Canadian oil sands crude output by a third. But Brent still ended with its sharpest weekly drop in four months as investors cashed out of April's big rally. O/R
U.S. crude CLc1 settled up 34 cents, or 0.77 percent, at $44.66 a barrel. Brent crude LCOc1 settled up 36 cents, or 0.80 percent, at $45.37 a barrel. dollar rose against a basket of currencies as remarks on possible rate hikes in 2016 from New York Fed President William Dudley pared some bets on a weaker greenback. more hawkish than market expectations. Futures are barely pricing in one hike," Omer Esiner, chief market strategist at Commonwealth Foreign Exchange in Washington, on Dudley's remarks.
U.S. gold futures GCv1 for June delivery settled up 1.7 percent at $1,294 an ounce.