(Adds U.S. market open, byline, dateline; previous LONDON)
* Strong U.S. economic data lifts stocks, bolster dollar
* Data bolsters notion Fed will hike rates in December
* Crude falls below $52 as abundant supplies weigh
* Wall St helped by strong banking sector results
By Herbert Lash
NEW YORK, Oct 14 Global stocks and the dollar
rebounded on Friday from losses a day earlier, buoyed by a
surprising rise in Chinese producer prices and strong U.S.
economic data that bolstered expectations the Federal Reserve
would raise interest rates in December.
The dollar was on track for its largest weekly increase in
more than three months, with rebounding U.S. retail sales and a
broad rise in producer prices last month indicating the economy
regained momentum in the third quarter after a lackluster
U.S. producer prices rose in September to record their
biggest year-on-year rise since December 2014, while retail
sales gained 0.6 percent after a 0.2 percent decline in
"Observers are increasingly confident that December will
finally bring the long-awaited interest rate hike," said Dennis
de Jong, managing director at UFX.com in Limassol, Cyprus.
The dollar index, which tracks the greenback against a
basket of six major currencies, added 0.4 percent to 97.862
and was up 1.3 percent for the week.
In China, September producer prices unexpectedly rose for
the first time in nearly five years and consumer inflation also
beat expectations, easing some concerns about the health of the
world's second-biggest economy.
Disappointing Chinese trade data on Thursday had rattled
investors and pushed global equity markets to three-month lows.
European shares tracked Asian markets higher and Wall Street
jumped as better-than-expected results from JPMorgan and
Citigroup lifted financial stocks.
Shares of JPMorgan, the biggest U.S. bank by assets,
rose 0.77 percent after it beat forecasts for revenue and
profit. Citigroup rose 1.18 percent after
earnings fell less than expected.
In Europe, the pan-regional FTSEurofirst 300 index
rose 1.55 percent to 1,344.44, while MSCI's all-country world
index of equity markets in 46 countries rose
The Dow Jones industrial average rose 141.07 points,
or 0.78 percent, to 18,240.01. The S&P 500 gained 14.08
points, or 0.66 percent, to 2,146.63 and the Nasdaq Composite
added 37.96 points, or 0.73 percent, to 5,251.29.
Oil slipped below $52 a barrel, giving up earlier gains, as
abundant crude supplies outweighed tighter U.S. fuel inventories
and plans by the Organization of the Petroleum Exporting
Countries to cut output.
"The fundamental backdrop is still bearish," said
Commerzbank analyst Carsten Fritsch. "Every increase is driven
by speculation and optimism," rather than tighter supplies, he
Global benchmark Brent was down 23 cents at $51.80 a
barrel. U.S. crude slide 8 cents to $50.36 a barrel.
The gain in Chinese producer prices helped lift U.S.
Treasury yields, with the benchmark 10-year note
down 8/32 in price to yield 1.7659 percent.
Rising U.S. Treasury yields, on the growing perception the
U.S. Federal Reserve will raise interest rates in December,
pushed euro zone government bond yields higher.
The benchmark 10-year German bund rose 2.1
basis points to 0.056 percent.
The dollar rose 0.63 percent to 104.31 yen, while the
euro fell 0.45 percent to $1.1006.
(Reporting by Herbert Lash; Editing by Nick Zieminski)