In European Equity Markets stocks rebounded on Friday as Deutsche Bank and Commerzbank rallied, helping stock markets to partly recover from the week’s losses. The pan-European FTSEurofirst 300 index was up 2.2 percent going into the close of trading, rising from its lowest level in more than two years. Germany’s DAX advanced 2.2 percent. Fears about how well European banks can cope with slow growth and low interest rates had pushed European banking shares to multi-year lows this week. Deutsche Bank gained 9.6 percent on Friday after saying it would buy back more than $5 billion in senior debt, easing concern about its bonds. Its rival, Commerzbank, reported a return to profit in the fourth quarter, and its shares jumped 16 percent.
In Currency Markets the dollar rose on Friday after data showed U.S. consumer spending appeared to have regained its mojo in January, supporting the possibility of the Federal Reserve continuing to raise interest rates this year. The solid data on U.S. retail sales boosted the dollar against the Japanese yen, which had been the primary beneficiary of global growth fears that have persisted through much of the year. the dollar rose 0.3 percent to 112.75 yen. It hit a session high of 113.16 following the retail sales data release. The euro fell 0.4 percent to $1.1280, not far Thursday’s high of $1.1377, its highest since October 2015. The dollar index rose to a session high of 96.133 after the retail sales data release. It was last up 0.5 percent to 96.047.
In Commodities Markets U.S. crude prices jumped 12 percent on Friday after a report once again suggested OPEC might resort to a production cut to reduce the world glut, and resilient stock markets and the euro added to the risk appetite in oil. U.S. crude was up $3.10 at $29.31 per barrel. Brent crude was up $2.72 at $32.78 a barrel, after falling below $30 in the previous session. Prices climbed Friday after the United Arab Emirates energy minister said late Thursday that members of the OPEC were ready to cooperate on possible production cuts. Venezuela proposed that OPEC and non-OPEC producers should at least freeze output at the current level. Gold was 0.6 percent lower at $1,240 an ounce, but was on pace for a 7.1% weekly return.
In US Equity Markets stocks staged a comeback on Friday, led by a rebound in beate-ndown financial and energy stocks after five straight days of a grueling rout on fears over the health of the global economy and the banking sector. The S&P 500 was up 0.93 percent, at 1,846.14. The Nasdaq Composite index was up 0.5 percent, at 4,288.36. JPMorgan jumped 5.6 percent after CEO Jamie Dimon bought more than $25 million of the bank’s stock. Activision Blizzard lost 10 percent after the videogame maker reported lower-than-expected quarterly revenue and profit. AIG jumped 5.8 percent after the largest commercial U.S. insurer struck a deal with activist investor Carl Icahn.
In Bond Markets U.S. Treasury prices fell on Friday after a report showed that U.S. consumer spending regained momentum in January, suggesting the economy may not be slowing as much as many investors have speculated in recent weeks. The benchmark 10-year note was last down 20/32 in price to yield 1.713 percent, up from 1.644 percent late on Thursday. The 10-year yield reached a session high of 1.715 percent on Friday morning. The 30-year bond was last down one full point in price to yield 2.567 percent, up from 2.520 percent on Thursday.