GLOBAL MARKETS-Wall Street adds to stock, rate cut bets after 'Thanksgiving buffet' jobs data

Investors raised their bets on the prospect of a U.S. interest rate cut this month, after payrolls data showed job growth came in roughly in line with expectations in November, while the euro dipped against the dollar as political turmoil gripped France.

Investors raised their bets on the prospect of a U.S. interest rate cut this month, after payrolls data showed job growth came in roughly in line with expectations in November, while the euro dipped against the dollar as political turmoil gripped France. Futures markets put an 87% chance on the U.S. Federal Reserve cutting rates by 25 basis points at its Dec. 17-18 meeting after the data, compared with 68% earlier in the session.

Nonfarm payrolls increased by 227,000 jobs last month after rising an upwardly revised 36,000 in October, in a month hit by hurricanes and strikes. Economists polled by Reuters had forecast payrolls accelerating by 200,000 jobs. "Data this morning was a Thanksgiving buffet with payrolls spot on, revisions positive, but unemployment ticking higher despite the participation rate falling," Lindsay Rosner, head of multi-sector investing at Goldman Sachs Asset Management, said.

"This print doesn't kill the holiday spirit and the Fed remains on track to deliver a cut in December," Rosner added in an email. Two of Wall Street's three main stock indexes were up after the data. The Dow Jones Industrial Average fell 0.16%, to 44,696, the S&P 500 rose 0.20%, to 6,086 and the Nasdaq Composite added 0.56%, to 19,811.86.

The U.S. dollar index ticked up 0.2% to $105.93. Treasury yields dipped after the data on Friday. The yield on benchmark U.S. 10-year notes fell 1.4 basis points to 4.168%, from 4.182% late on Thursday, while the 2-year note yield, which typically moves in step with interest rate expectations for the Federal Reserve, fell 4.8 basis points to 4.098%, from 4.146%.

European stocks were also a notch up 0.1% on the day , while Britain's FTSE 100 fell about 0.5%, as investors digested news that British insurer Aviva had agreed to buy Direct Line for 3.6 billion pounds ($4.6 billion). The move was further evidence of a wider pick-up in dealmaking, said Shaneel Ramjee, senior investment manager at Pictet. "Throughout both Europe and the U.S., these deals are starting to get done, and that just means more activity in the economy," he said.

In Asia, MSCI's broadest index of Asia-Pacific shares outside Japan reversed earlier losses to be up 0.2% thanks to a rally in Chinese shares, making up for investor caution around political ructions in South Korea. Chinese shares had climbed to three-week highs as investors scooped up technology shares ahead of a top-level policy meeting next week that will set the agenda and targets for China's economy next year.

The risk premium investors demand to hold French debt rather than German Bunds dropped to a two-week low on Friday, after President Emmanuel Macron said he would appoint a new prime minister soon to get a 2025 budget approved by parliament. The euro had rallied on Thursday, on market relief that France had avoided a more volatile political outcome for now. The euro was last broadly flat on the day and the week at $1.057.

BITCOIN REVERSAL Bitcoin, which hit the $100,000 mark for the first time on Thursday as investors bet on a friendly U.S. regulatory shift, ran into profit-taking. It tumbled as far as $92,092 and was last up slightly on the day at $99,272.

"This spike in volatility over the last 24 hours has the hallmarks of a classic blow-off top," said Tony Sycamore, analyst at IG. Oil prices fell as the decision from OPEC+ to delay a planned hike in output to April highlighted concerns about weak demand. U.S. crude fell 1.3% to $67.41 a barrel and Brent dropped to $71.26, down 1.15% on the day.

Gold prices inched higher, up about 0.3% to $2,639 per ounce , but were still headed for a second week of declines.