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GLOBAL MARKETS-Stocks seen falling further on US jobs; oil down

Published 07/08/2011, 09:21 AM
Updated 07/08/2011, 09:24 AM
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* Wall St poised to open down on dismal US June jobs data

* European stocks turn negative also on euro zone banks

* World stocks steady off earlier five-week high

* US crude down 2 pct, giving back most of Thursday's gain (Recasts after U.S. jobs data; changes dateline, previous LONDON)

NEW YORK, July 8 (Reuters) - U.S. stock markets were poised to open weaker on Friday and stocks elsewhere lost ground after the U.S. government's jobs report for June came in way below market expectations, also sending oil prices down and trimming the dollar's gains.

Worries about the peripheral euro zone banking sector also had earlier knocked world stocks from five-week highs and sent European equities lower.

On Wall Street, U.S. stock index futures weakened ahead of their 9:30 a.m. (1330 GMT) open. Futures for the S&P 500 sank 16.2 points and were below fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract.

Dow Jones industrial average futures fell 104 points, and Nasdaq 100 futures fell 21.50 points.

The U.S. Labor Department's closely watched employment report on Friday showed nonfarm payrolls rose only 18,000, the weakest reading since September and well below economists' expectations for a 90,000 rise. [ID:nOAT004829]

The dollar index <.DXY> was up just 0.1 percent after being up 0.3 percent earlier. U.S. crude oil fell 2 percent.

(Reporting by Barani Krishnan, Editing by Chizu Nomiyama)

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