Stocks, euro rise as Deutsche Bank shares rebound

Stock prices across major markets stabilised on Friday, while the euro recovered as Deutsche Bank's shares clawed up from record lows on a report it is close to a deal to reduce a massive US settlement over misselling mortgage bonds.

Brent crude prices fell as traders booked profits on a rally underpinned by an OPEC agreement to reduce output for the first time in eight years to address global oversupply.

US, German government bond yields rose as investors trimmed holdings in reaction to the gains on Wall Street and in European equity markets.

"Wall Street was right to worry about Deutsche Bank, but yesterday was a bit of an overreaction, and we're walking back a little bit today," said Kim Forrest, senior equity research analyst at Fort Pitt Capital Group in Pittsburgh.

Deutsche Bank AG's US-listed shares were last up over 13 per cent at $13.02 , while its Frankfurt-listed shares were up 6 percent, rebounding from a record low of 9.898 euros earlier Friday.

AFP reported on Friday Germany's largest lender is near to reducing its $14-billion settlement from US authorities to $5.4 billion.

The heavier amount had raised investor fears about Deutsche Bank's stability and whether it would be able to raise the cash to pay the settlement.

The Dow Jones industrial average was up 189.32 points, or 1.04 per cent, to 18,332.77, the S&P 500 was 19.05 points, or 0.89 per cent, higher at 2,170.18 and the Nasdaq Composite was up 42.70 points, or 0.81 per cent, to 5,311.85. The S&P financial index was up 1.5 per cent, while the STOXX Europe Banks index was up 0.5 per cent. Europe's broad FTSEurofirst 300 index was up 0.12 per cent, at 1,350.81.

The MSCI world equity index, which tracks shares in 45 nations, rose 1.21 points or 0.29 per cent, to 418.87.

In the currency market, the euro was last up 0.19 per cent, at $1.1242, rebounding from a nine-day low of $1.1153 earlier Friday. The dollar index was down 0.15 per cent at 95.397.

Brent crude was last down $0.25, or 0.51 per cent, at $48.99 a barrel, but US crude was last up $0.30, or up 0.63 per cent, at $48.13 per barrel.

With positive turnaround in stock prices, traders reduced their safe-haven holdings of low-yielding US and German government bonds.

The yield on benchmark 10-year Treasury notes was up 4 basis points at 1.594 percent, while the 10-year German Bund yield was little changed at -0.118 percent, according to Reuters data.

Spot gold prices rose $1.22 or 0.09 percent, to $1,321.27 an ounce.
Reuters