GLOBAL MARKETS-Stocks, dollar slump as ECB decision disappoints; euro jumps
* Euro up, European shares slump as ECB measures disappoint
* Wall St falls, U.S. dollar has biggest decline in years
* Oil jumps after report Saudi Arabia to call for OPEC cut (Updates to U.S. afternoon trading, changes byline, dateline; previous LONDON)
By Sinead Carew
NEW YORK, Dec 3 (Reuters) - U.S. and European equity markets slumped on Thursday and the euro enjoyed its biggest one-day percentage rise since March 2009 on investor disappointment over the European Central Bank's latest policy easing measures.
The ECB cut its deposit rate by the minimum 0.1 percentage point most traders had expected, to -0.3 percent, and extended its asset purchase program but did not increase the amount of government bonds it buys each month.
Oil futures jumped on speculation ahead of an OPEC meeting on Friday. Stocks on Wall Street had initially risen at the open, but then sharply fell as trading progressed.
The euro surged 3 percent against the dollar, while government bond yields rose. Speculators as of last week had amassed the largest short position in the euro since May in anticipation of more ECB stimulus. Shorter term two-year German bonds had their sharpest gain since 2011.
"Markets are still trying to digest the implications of the ECB disappointing market expectations," said Steven Englander, head of G10 foreign exchange strategy at Citi in New York. "The market is taking the message that the ECB will be less willing to ease down the road as well." Continuación...