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 The jump in oil prices took beaten-down Brent back above $80 a
barrel. U.S. interest rates eased as the dollar gained, and the euro
declined.
Wall Street's Dow Jones industrial average and the S&P 500 ended at
new record highs, with each rising more than 1 percent on the week
in the fifth straight week of gains for U.S. equities.
"This is a one-two punch for global growth," said Mark Luschini,
chief investment strategist at Janney Montgomery Scott in
Philadelphia.
The Dow Jones <.DJI> rose 91.06 points, or 0.5 percent, to close at
17,810.06 on Friday. The S&P 500 <.SPX> gained 0.52 percent to
2,063.50 and the Nasdaq Composite <.IXIC> added 0.24 percent to
4,712.97. The Nasdaq rose 0.5 percent for the week.
European shares <.FTEU3>, oil <LCOc1> and other growth-sensitive
commodities all leapt on China's move to cut rates to 5.6 percent,
following recent data that showed its huge economy was heading for
its worst year in almost a quarter of a century.
China's rate reductions were its first in more than two years. They
came as ECB head Mario Draghi spoke of his determination to use more
aggressive measures, such as large scale asset purchases, to ensure
the euro zone does not slump into a new crisis.
Both the euro zone and China have lagged the momentum of the United
States, stimulus-driven Japan and faster-growing Britain over the
last month, but a ramping up of the ECB's rhetoric and Beijing's
actions will stoke hopes of a turnaround.
Germany's DAX <.GDAXI> and France's CAC <.FCHI> rose nearly 3
percent. The FTSE Eurofirst 300 added 2.1 percent.
The MSCI world equity index <.MIWD00000PUS>, which tracks shares in
45 nations, was up 0.76 percent.
The dollar index <.DXY> was up 0.82 percent, as the euro gave up
more than 1 percent and was last at $1.2385.
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The yen was up against the dollar. Japanese Finance Minister Taro
Aso said on Friday the yen's fall over the past week was "too
rapid." It was one of the strongest warnings against a weak yen
since the aggressive stimulus efforts began two years ago, and saw
the currency leap off a 7-year low to 117.72.
Benchmark 10-year U.S. Treasury notes <US10YT=RR> were up 6/32 in
price to yield 2.31 percent from 2.34 percent late Thursday.
The rate cut by China added to a positive mood among oil traders,
many of whom expect the Organization of the Petroleum Exporting
Countries to trim production at what looks to be a landmark meeting
in Vienna on Nov. 27. Brent traded above $80 a barrel and was last
up $1 to $80.35.
Copper <CMCU3> and gold <XAU=> also got a lift, with the red metal
up 0.50 percent. Spot gold climbed back over $1,200 and was last
traded at $1,200.80 an ounce, ahead nearly $7, as traders cheered
the prospect of more global stimuli.
(Reporting by Michael Connor in New York, additional reporting by
Ryan Vlastelica; Editing by Bernadette Baum, Nick Zieminski and
Andre Grenon)
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