* Deutsche stock recovers on report of reduced U.S.
* Brent crude slips after rally on OPEC agreement to cut
* U.S. bond yields rise as investors pare safe-haven
(Updates with closing Wall Street levels)
By Richard Leong
NEW YORK, Sept 30 Stock prices across major
markets rose on Friday, while the euro stabilized as Deutsche
Bank's shares recovered from record lows on a report it is close
to a deal to reduce a massive U.S. settlement over charges
related to selling toxic mortgage bonds.
Wall Street ended a volatile week on a positive note,
marking a solid third quarter. The S&P 500 booked a 3.3 percent
gains, while the Dow Jones Industrial average rose 2.1 percent
and the Nasdaq gained 9.7 percent.
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.
"We are very much being driven by headline risks at Deutsche
Bank," said Gennadiy Goldberg, interest rates strategist at TD
Securities in New York.
Deutsche Bank AG's U.S.-listed shares were last up 14
percent at $13.09 but they have lost 11.3 percent for the
month. 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 an
agreement with U.S. officials to pay $5.4 billion to settle
charges. Germany's largest lender had said it would
fight a $14 billion demand from the U.S. Department of Justice.
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 rose 164.7 points,
or 0.91 percent, to 18,308.15, the S&P 500 gained 17.14
points, or 0.8 percent, to 2,168.27 and the Nasdaq Composite
increased 42.85 points, or 0.81 percent, to 5,312.00.
The S&P financial index was up 1.4 percent, while
the STOXX Europe Banks index was up 0.6 percent.
Europe's broad FTSEurofirst 300 index eked out a
0.05 percent gain, at 1,350.66 after falling as much as 1.7
The MSCI world equity index, which tracks
shares in 45 nations, rose 0.77 points or 0.18 percent, to
In the currency market, the euro was last up 0.13
percent, at $1.1237, rebounding from a nine-day low of $1.1153
The dollar index was down 0.06 percent at 95.479.
Brent crude settled down 18 cents or 0.37 percent
lower at $49.06 a barrel, but U.S. crude settled 41 cents
or 0.86 percent higher at $48.24.
With the turnaround in stock prices, traders reduced their
safe-haven holdings of low-yielding U.S. and German government
The yield on benchmark 10-year Treasury notes was up 4 basis
points at 1.596 percent, while the 10-year German Bund yield was
little changed at -0.118 percent, according to Reuters data.
Spot gold prices fell $3.29 or 0.25 percent, to
$1,316.76 an ounce.
(Additional reporting by Gertrude Chavez-Dreyfuss in New York;
Yashaswini Swamynathan in Bengaluru; Marc Jones in London;
Nichola Saminather in Singapore; Editing by Richard Balmforth
and Nick Zieminski)