Stellar U.S. jobs data boosts dollar and stocks

The dollar climbed to a more than four-year peak and global equity markets rose on Friday after data showed U.S. employers stepped up hiring in September and the jobless rate fell to a six-year low, further signs of a relatively strong economy.

The strong dollar helped pushed gold XAU= below $1,200 an ounce for the first time this year after a Labor Department report showed U.S. nonfarm payrolls rose by 248,000 last month and the jobless rate fell two-tenths of a point to 5.9 percent.

The better-than-expected report led the euro to fall to a more than two-year low against the dollar, which hit a 15-month high against the Swiss franc CHF=. The dollar index of six major currencies was on track for its biggest yearly gain in nine years.

Stocks in Europe and on Wall Street rose about 0.8 percent, and Treasuries yields, which move inversely to prices, also rose.

"Overall it's a positive report for the dollar and points to continued growth and recovery in the U.S.," said Sireen Haraji, currency strategist at Mizuho Corporate Bank in New York.

In the interest rate futures market, however, traders boosted bets the Federal Reserve could raise rates slightly earlier next year than anticipated. Rate futures contracts show traders are betting the first Fed rate hike will come in July 2015, based on CME FedWatch, which tracks rate hike expectations using its fed funds futures contracts.

The dollar index hit a high of 86.746 .DXY, its strongest since June 2010, and was last up 1.27 percent at 86.691.

The greenback jumped 1.32 percent to 109.74 yen JPY=, while the euro EUR= slid 1.27 percent to $1.2507.

MSCI's all-country world index .MIWD00000PUS of stock performance in 45 countries rose 0.31 percent, held back by sluggish emerging markets .MSCIEF.

The FTSEurofirst 300 .FTEU3 index of top European shares rose 0.89 percent at 1,347.02.

On Wall Street, the Dow Jones industrial average .DJI added 140.4 points, or 0.84 percent, to 16,941.45. The S&P 500 .SPX gained 17.99 points, or 0.92 percent, to 1,964.16 and the Nasdaq Composite .IXIC rose 52.86 points, or 1.19 percent, to 4,483.05.

Treasuries prices fell. The 10-year Treasury note US10YT=RR fell 8/32 in price to yield 2.4646 percent.

Brent crude oil futures fell below $92 a barrel, down for a fourth consecutive day in a slide that has pushed prices to their lowest since 2012. Abundant supplies and a strong dollar continue to weigh on the market.

Brent for November delivery LCOc1 was down $1.57 at $91.85 a barrel. U.S. November crude CLc1 slipped $1.29 to $90.72.