World stocks rally, oil up slightly
Equity markets rallied after a week-long selloff, and crude oil prices edged higher on Friday but were down from peaks earlier in the week on supply fears sparked by the uprising in Libya.
Saudi Arabia raised production about 8% to above 9 mln barrels per day to make up for a near halt in Libyan exports, an industry source said, helping prices fall further from peaks last seen in 2008.
"The tensions in the Middle East seem to be less at the forefront of the market's mind. The initial panic seems to have subsided a bit," said Phil Gillett, a trader at Spreadex.
The Saudi move bolstered news that U.S. consumer sentiment rose to its highest level in three years in February, helping offset a bearish report that showed the U.S. economy grew slower than initially estimated in the fourth quarter.
The U.S. dollar rebounded against the euro but gold prices rose toward $1,410 an ounce and were on track for a fourth straight week of gains, supported by safe-haven demand in light of fears violence in Libya could spread in the region.
The euro was down 0.37% at $1.3752.
Consumer sentiment rose to 77.5, up from 74.2 in January, and the highest since January 2008, according to the Thomson Reuters/University of Michigan survey.
Gross domestic product was revised lower to an annualized rate of 2.8% from an initial 3.2% estimate.
Events in North Africa and the Middle East still grabbed the spotlight even as oil prices retreated from 2-1/2 year peaks of almost $120 a barrel in London on Thursday to hover at less than $112 on Saudi efforts to plug any supply gaps.
"We have started producing over 9 mln barrels per day. We have a lot of production capacity," the industry source told Reuters.
ICE Brent crude futures in London were up 13 cents at $111.49 after briefly trading negative on the day. U.S. light sweet crude oil rose 26 cents to $97.52.
Stocks in Europe rose, with the FTSEurofirst 300 index of top European shares closing up 1.2%.
World equities as measured by MSCI's all-country world index rose almost 0.8%.
"We got a little bit oversold in a very short period of time this week so it's normal to get this kind of a rebound," said James Dailey, portfolio manager of TEAM Asset Strategy Fund in Harrisburg, Pennsylvania.
"The market is likely to bounce a little more, but not too much since there is still more to the downside after such a strong rally and ongoing geopolitical concerns."
The Dow Jones industrial average was up 44.84 points, or 0.37%, at 12,113.34. The Standard & Poor's 500 Index was up 9.64 points, or 0.74%, at 1,315.74. The Nasdaq Composite Index was up 32.84 points, or 1.20%, at 2,770.74.
U.S. Treasury debt prices rose as turmoil in North Africa and worries over the economic impact of higher oil prices maintained a safe-haven bid for government debt.
The benchmark 10-year U.S. Treasury note was up 5/32 in price to yield 3.43%.
German bond prices fell as oil prices retreated and after an Italian auction of 9.5 bln euros worth of debt attracted decent demand.
The Bund future was last down 15 ticks down on the day at 124.26.
Gold prices rose above $1,400 an ounce and were on track for a fourth straight week of gains, supported by interest in the metal as a haven from risk as violence flared in Libya.
Government forces shot dead two protesters in the Libyan capital Tripoli, Al Jazeera television reported, as a popular uprising against Muammar Gaddafi closed in on his main power base.
Spot gold prices rose $4.55 to $1,404.30 an ounce
道琼斯工业平均指数上涨44.84点，或0.37％，报12,113.34。 标准普尔500指数上涨9.64 1,315.74点，涨幅0.74％。 纳斯达克综合指数上涨32.84 2,770.74点，涨幅1.20％。
基准的10年期美国国债涨5 / 32，收益率3.43％的价格。