* Deutsche stock recovers on report of reduced U.S.
* Oil pulls back after rally on OPEC agreement to cut output
* U.S. bond yields rise as investors pare safe-haven
(Updates market action, changes dateline, previous LONDON)
By Richard Leong
NEW YORK, Sept 30 Stock prices across major
markets stabilized 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 U.S. 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.
U.S., 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 U.S.-listed shares were last up over 13
percent 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 U.S. authorities to
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 percent, to 18,332.77, the S&P 500 was
19.05 points, or 0.89 percent, higher at 2,170.18 and the Nasdaq
Composite was up 42.70 points, or 0.81 percent, to
The S&P financial index was up 1.5 percent, while
the STOXX Europe Banks index was up 0.5 percent.
Europe's broad FTSEurofirst 300 index was up 0.12
percent, at 1,350.81.
The MSCI world equity index, which tracks
shares in 45 nations, rose 1.21 points or 0.29 percent, to
In the currency market, the euro was last up 0.19
percent, at $1.1242, rebounding from a nine-day low of $1.1153
The dollar index was down 0.15 percent at 95.397.
Brent crude was last down $0.25, or 0.51 percent, at
$48.99 a barrel, but U.S. crude was last up $0.30, or up
0.63 percent, at $48.13 per barrel.
With positive turnaround in stock prices, traders reduced
their safe-haven holdings of low-yielding U.S. and German
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.
(Additional reporting by Yashaswini Swamynathan in Bengaluru;
Marc Jones in London; Nichola Saminather in Singapore; Editing
by Richard Balmforth and Nick Zieminski)