Global stocks gain on oil boost; dollar fades vs yen
By Chuck Mikolajczak
NEW YORK (Reuters) - Global equity markets advanced on Friday, buoyed by a jump in oil prices, but were lower for the week as the dollar gave up early gains against the yen.
Stocks on Wall Street and in Europe were lifted by energy names, with Brent and U.S. crude oil jumping more than 6 percent as drawdowns in U.S. crude stocks fed hopes a punishing global glut that has persisted for nearly two years may be nearing a tipping point.
Global benchmark Brent crude futures LCOc1 jumped 6.4 percent to settle at $41.94 per barrel, scoring their biggest weekly gain in five. U.S. crude futures CLc1 closed up $2.46, or 6.6 percent, to $39.72, up nearly 8 percent for the week.
The STOXX 600 Europe Oil and Gas index was up more than 3 percent while the S&P energy index .SPNY climbed 2 percent as the top-performing sectors in each region, tracking the rise in crude prices.
"Clearly if you are looking at it from an index perspective, the stronger commodities are having a bit of a positive effect," said Nick Kalivas, senior equity strategist at Invesco PowerShares in Chicago.
"The market still remains very focused on energy as kind of an indicator of economic health and credit risk that I don’t think has faded yet."
The Dow Jones industrial average .DJI rose 35 points, or 0.2 percent, to 17,576.96, the S&P 500 .SPX gained 5.68 points, or 0.28 percent, to 2,047.59 and the Nasdaq Composite .IXIC added 2.32 points, or 0.05 percent, to 4,850.69.
Even with Friday's modest gains, the S&P 500 suffered its biggest weekly decline in two months. Continued...