World shares, crude oil dip despite stronger U.S. jobs

By Herbert Lash

NEW YORK (Reuters) - Global stocks and crude oil slipped on Friday even after a U.S. employment report for October surpassed expectations, as investors looked beyond next week's presidential election to the looming "fiscal cliff."

The dollar climbed to a more-than-six-month peak against the yen and a three-week high versus the euro after U.S. employers stepped up hiring and the unemployment rate ticked higher as more workers renewed job hunts, a hopeful sign for the economy.

But other data highlighted a mixed picture. Demand for U.S. factory goods rose in September by the most in over a year, but a gauge of business investment plans showed lackluster momentum in the recovery despite a slight upward revision.

"The (jobs) report itself was good but just not good enough, especially after the pre-rally we had yesterday," said Todd Schoenberger, managing principal at the BlackBay Group in New York, referring to the 1.1 percent surge in the broad-based S&P 500 index on Thursday, its best gain since September 13.

The employment data was the last major report card on the U.S. economy before Tuesday's presidential election. Polls show President Obama and Republican Mitt Romney locked in a dead heat in a race that may hinge on the nation's feeble jobs market.

"With the election next week and the outcome of that still so uncertain, some modest downward pressure is to be expected for the rest of the day," Schoenberger said.

Much of Thursday's rally was rooted in the belief that significant East Coast storm damage will force capital spending, rebuilding and help boost employment far more quickly than was thought a week ago, Andrew Wilkinson, chief economic strategist at Miller Tabak & Co, told clients.

But Wilkinson said the so-called fiscal cliff -- when higher tax rates and cuts in government spending are scheduled to kick in early next year if Congress fails to act -- has made investors reluctant to buy further into the equity rally.