GLOBAL MARKETS – Stocks and gold are rising as investors remain optimistic about the interest rate outlook

(Updates throughout; updated prices at 1035 GMT)

By Amanda Cooper

LONDON, Dec 6 (Reuters) – Global stocks rose on Wednesday after U.S. jobs data reinforced investors' belief that interest rates could soon start falling, leading to a fall in bond yields and a rise in gold prices in recent trading days has.

Market trading was relatively calm, with volatility measures stabilizing at recent lows as investors awaited a report on U.S. private sector jobs growth later in the day.

A separate look at job openings on Tuesday showed a little more softening than expected, but did not point as much to a larger decline in employment, while activity in the U.S. services sector continued last month.

U.S. Treasury yields remained near their lowest level in three months, while futures markets showed traders estimate a two out of three chance of a rate cut by March, giving gold a further boost and supporting stocks.

The MSCI All-World rose 0.2%, while in Europe the STOXX 600 rose 0.2%. Germany's DAX, which includes a number of technology and industrial heavyweights, hit record highs.

Next on the data front is the ADP survey of U.S. private sector employment, which is expected to show a rise of 130,000 in November, according to a Reuters poll.

“We are seeing increasing signs that the U.S. labor market is beginning to slow, with job openings falling to their lowest level since March 2021 and the last two ADP reports adding a total of 202,000 jobs as private sector hiring increased is easing,” said CMC Markets boss, market strategist Michael Hewson.

“There were 113,000 new jobs added in October – an improvement over September – and an increase to 130,000 is expected in November due to a lot of additional hiring in the weeks leading up to Thanksgiving and the Christmas season, which is unlikely for us.” “There is none Signs that the US labor market will collapse from 2024,” he said.

The story goes on

RATE CUT BUNCE

U.S. stock futures edged higher, with the tech-heavy Nasdaq showing a 0.3% gain, while S&P 500 futures rose 0.22%. U.S. 10-year Treasury yields rose 2 basis points to 4.195% after hitting their lowest level since early September the previous day.

The “sell-off in yields across the curve is strong evidence of the market's heavy focus on this week's jobs data,” said IG analyst Tony Sycamore, with the ADP employment report due on Wednesday and non-farm payrolls expected on Friday become.

With markets all but certain that the Fed's next move will be a rate cut, dovish rhetoric from European Central Bank officials and the Reserve Bank of Australia's decision to maintain its monetary policy on Tuesday have lifted bets for a global one Peak interest rates stoked. The Bank of Canada is widely expected to continue taking a wait-and-see approach on Wednesday.

This has supported the U.S. currency's recovery from last week's near four-month low, with the U.S. dollar index steady at around 104.00 on Wednesday, compared to a low of 102.46 a week ago.

“The USD weakened as it looked like the Federal Reserve would cut interest rates while other central banks held rates on hold,” said James Kniveton, a senior corporate foreign exchange trader at Convera in Melbourne. “Now that seems to be changing, and other central banks are following the Fed’s lead.”

Against the yen, the dollar rose 0.16% to 147.37 and was steady against the euro at $1.0788.

Bitcoin rose 0.3% to $44,170, after rising as high as $44,490 overnight, buoyed by expectations of a Fed rate cut and speculation that U.S. regulators will soon allow spot bitcoin exchange-traded funds will be approved.

Gold rose 0.1% to $2,022 an ounce, stabilizing after Monday's rise to a record $2,135.40.

Crude oil prices fell another 1% on Wednesday to their lowest level in five months, amid worsening demand prospects from China and doubts about the impact of OPEC cuts.

Brent crude futures fell 1.1% to $76.37 a barrel, while U.S. futures fell the same amount to $71.53.

(Additional reporting by Kevin Buckland in Tokyo; Editing by Jacqueline Wong and Angus MacSwan)