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JOLTS report confirms measured labor market cooldown

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South Korea's won tumbles against the dollar amid martial law

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Crude rises ahead of OPEC+ meeting

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Yuan drops amid Trump tariff threats

(Updates to mid-afternoon)

By Stephen Culp

NEW YORK, Dec 3 (Reuters) - A surprise declaration of martial law in Korea that had sent the won plummeting was lifted on Tuesday, removing one source of geopolitical jitters for world markets to contend with.

U.S. stocks were muted and range-bound, with the blue-chip Dow down the most.

"These developments, combined with those in France and the outcome of the U.S. presidential election, all are creating uncertainty as investors think about how to position themselves moving into 2025," said Greg Bassuk, CEO at AXS Investments in New York.

South Korea's won had tumbled to a two-year low against the dollar following a declaration of martial law, which was lifted later in the session, and crude prices gained amid supply concerns related to OPEC+ output cuts and simmering tensions in the Middle East.

The Labor Department released its closely monitored Job Openings and Labor Turnover Survey (JOLTS), which showed job openings on the rise and layoffs on the wane, supporting the notion that the labor market continues its gradual cool-down.

On Friday, the Labor Department is due to release its much anticipated November employment report, which will be parsed for clues regarding U.S. Federal Reserve's policy decisions in December and beyond.

"We're seeing the rally take a pause, with stocks at all-time highs," Bassuk added. "And there's a host of economic data on this week's calendar, so investors are taking a wait-and-see as this week's data will likely impact the Fed's December rate decision."

Elsewhere, aside from the ongoing conflicts in Ukraine and the Middle East, the French government is on the verge of collapse following a vote of no confidence from far-right and left parties.

South Korean President Yoon Suk Yeol declared martial law to in what he said was an effort to block efforts of opposition parties to hijack the parliamentary process. He later reversed the decision, honoring a parliamentary vote against the measure.

The Dow Jones Industrial Average fell 44.06 points, or 0.10%, to 44,737.19, the S&P 500 rose 0.79 points, or 0.01%, to 6,048.03 and the Nasdaq Composite rose 38.49 points, or 0.20%, to 19,442.44.

European shares nabbed a one-month high even as political turmoil in France, which has pushed the French government to the verge of collapsing, kept investors on edge.

MSCI's gauge of stocks across the globe rose 3.10 points, or 0.36%, to 867.74.

The STOXX 600 index rose 0.37%, while Europe's broad FTSEurofirst 300 index rose 8.89 points, or 0.44%

Emerging market stocks rose 10.17 points, or 0.94%, to 1,096.56.

The dollar lost ground against a basket of world currencies as financial markets cemented expectations that the Federal Reserve will make another interest rate cut at this month's policy meeting.

But its losses were held in check by France's unfolding political crisis, and lingering tariff threats from President-elect Donald Trump.

China's onshore yuan touched its weakest level since the 2008 financial crisis in the face of tariff worries.

The dollar index, which measures the greenback against a basket of currencies including the yen and the euro, fell 0.07% to 106.29, with the euro up 0.14% at $1.0512.

The Korean won weakened 0.74% to 1,414.57 per dollar.

Against the Japanese yen, the dollar weakened 0.15% to 149.38.

Bitcoin was uncharacteristically subdued, prolonging its flirtation with the elusive and closely watched $100,000 mark.

In cryptocurrencies, bitcoin fell 0.03% to $95,382.00. Ethereum declined 1.16% to $3,574.70.

Yields on 10-year Treasuries edged higher in the wake of the JOLTS report as investors cement their expectations for a 25 basis point rate cut at the conclusion of the Fed's Dec. 17-18 policy meeting.

The yield on benchmark U.S. 10-year notes rose 2.1 basis points to 4.215%, from 4.194% late on Monday.

The 30-year bond yield rose 2.9 basis points to 4.3868% from 4.358% late on Monday.

Crude oil prices gained ground ahead of an expected decision by OPEC+ to approve continued output cuts.

Oil's advance was also supported by a fragile ceasefire between Israel and Lebanon.

U.S. crude rose 2.70% to $69.94 per barrel, while Brent rose to $73.62 per barrel, up 2.49% on the day.

Gold held firm amid firming expectations for a December rate cut from the Federal Reserve.

Spot gold rose 0.08% to $2,641.05 an ounce. U.S. gold futures rose 0.39% to $2,645.30 an ounce.

(Reporting by Stephen Culp; additional reporting by Harry Robertson in London and Kevin Buckland in Tokyo; Editing by Nick Zieminski)