NEW YORK, June 3 (Reuters) - Wall Street edged higher and the dollar rebounded on Tuesday as market participants looked past ongoing tariff wrangling and lowered economic expectations ahead of Friday's crucial U.S. employment report.
All three major U.S. stock indexes were up modestly while gold backed down from a near four-week high in opposition to the strengthening greenback.
"Today is a day with no big drivers," said Tim Ghriskey, senior portfolio strategist Ingalls & Snyder in New York. "The market is becoming more comfortable with Trump's negotiation style. He comes out with guns blazing and then is, you know, very happy to, you know, put his guns away, having made his point.
"He expects a reasonable settlement at least, which he'll call a huge win, of course," Ghriskey added. "But in reality he's not looking to punish our trading partners; he's looking for incremental adjustments to tariffs."
The Organization for Economic Cooperation and Development (OECD) said the global economy is on course for a more drastic slowdown than it expected only a few months ago. It cited the fallout from Trump's trade war, and warned that growth will be even weaker as protectionism increases, fuelling inflation and disrupting supply chains.
That sentiment was shared by the United Nations' International Labor Organization (ILO), which downgraded its global employment forecast due to worsening economic conditions arising from trade tensions.
In economic data, a report from the U.S. Labor Department showed the number of unfilled U.S. jobs unexpectedly rose in April, while new orders for factory-made goods posted a steeper drop than analysts anticipated.
Investors are now training their focus on the May employment report, expected on Friday. Economists polled by Reuters expect the U.S. economy added 130,000 jobs last month, with the unemployment rate standing pat at 4.2%.
The Dow Jones Industrial Average (.DJI), rose 30.12 points, or 0.07%, to 42,334.83, the S&P 500 (.SPX), rose 12.36 points, or 0.21%, to 5,948.30 and the Nasdaq Composite (.IXIC), rose 100.78 points, or 0.52%, to 19,343.39.
MSCI's gauge of stocks across the globe (.MIWD00000PUS), rose 0.37 points, or 0.04%, to 883.25. The pan-European STOXX 600 (.STOXX), index fell 0.13%, while Europe's broad FTSEurofirst 300 index (.FTEU3), fell 1.85 points, or 0.09%.
Emerging market stocks (.MSCIEF), rose 3.26 points, or 0.28%, to 1,157.03. MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS), closed higher by 0.37% to 609.76, while Japan's Nikkei (.N225), fell 23.86 points, or 0.06%, to 37,446.81.
The dollar bounced back from a six-week low, even as concerns persisted over potential economic damage in the wake of Trump's trade war.
The dollar index , which measures the greenback against a basket of currencies including the yen and the euro, rose 0.58% to 99.15, with the euro down 0.49% at $1.1386.
Against the Japanese yen , the dollar strengthened 0.74% to 143.75.
Yields on 10-year U.S. Treasuries dipped but were off their lows in the wake of weaker than expected U.S. economic data.
The yield on benchmark U.S. 10-year notes fell 2.2 basis points to 4.44%, from 4.462% late on Monday.
The 30-year bond yield fell 3.3 basis points to 4.9614% from 4.995% late on Monday.
The 2-year note yield, which typically moves in step with interest rate expectations for the Federal Reserve, rose 0.8 basis points to 3.953%, from 3.945% late on Monday.
U.S. crude rose 1.87% to $63.69 a barrel and Brent rose to $65.68 per barrel, up 1.62% on the day.
Gold prices retreated from a near four-week high amid profit-taking and in opposition to the strengthening dollar.
Spot gold fell 0.97% to $3,346.06 an ounce. U.S. gold futures fell 0.75% to $3,345.20 an ounce.
Reporting by Stephen Culp; Additional Reporting by Rae Wee and Linda Pasquini; editing by Mark Heinrich
