NEW YORK (Reuters) – A sharp rebound in crude prices lifted stocks on Wall Street on Wednesday in a late rally, but a gauge of equities across the globe closed lower on lingering concern about economic growth.

Crude turned higher after data showed U.S. gasoline demand spiked and the S&P 500 climbed steadily after that, ending 2 percent above its session low.

“You have a tremendous amount of underperformance out there in the hedge fund community,” said Ian Winer, director of trading at Wedbush Securities in Los Angeles. “When the market starts to turn, it starts to feed on itself because people can’t afford to miss out on a rally.”

Other assets, like Treasuries and gold, reversed course after the bounce in crude.

“As much as it frustrates people, the reality is (oil and equities) are incredibly highly correlated and they have been really going back to November,” said Randy Frederick, managing director of trading and derivatives for Charles Schwab in Austin.

The Dow Jones industrial average rose 53.21 points, or 0.32 percent, to 16,484.99, the S&P 500 gained 8.53 points, or 0.44 percent, to 1,929.8 and the Nasdaq Composite added 39.02 points, or 0.87 percent, to 4,542.61.

The 14-day correlation between the S&P 500 and U.S. crude stands at 0.93, just below the 3-1/2 year high hit earlier this month.

The bounce in the S&P contrasted with a fall in European stocks, which were weighed by energy and commodity sector names. The pan-European FTSEurofirst 300 share index fell 2.3 percent and MSCI’s gauge of stocks globally fell 0.5 percent.

Nikkei futures jumped 0.9 percent.

OIL REBOUNDS

Government data showed U.S. crude oil stockpiles rose by 3.5 million barrels in the United States last week to an all-time peak. But the increased gasoline demand over the past four weeks and a drop in inventories helped push crude futures higher.

Brent crude, the global benchmark, rose 3.7 percent to $34.50 a barrel. U.S. crude added 1.1 percent to $32.23.

The turn in oil and stocks pushed yields on the lowest-risk government bonds sharply higher, with prices ending the day slightly in the red.

Benchmark 10-year U.S. notes were last off 2/32 in price to yield 1.7501 percent. At their session low the yield was 1.647 percent.

In currency markets, the yen, which had been initially bid up on its safe-haven appeal, ended the day above 112, little changed against the U.S. dollar. It earlier reached an almost three-year high against the euro of 123.43 yen.

Sterling hit a seven-year low versus the dollar of $1.3876 on concerns Britons might vote to leave the European Union in a June referendum. It last traded down 0.7 percent at $1.3924.

The euro dipped 0.1 percent versus the greenback to $1.1008. The dollar index was flat.

Copper slipped 0.1 percent to $4,641.85 a tonne.

Spot gold retreated from major gains earlier in the day, last trading up 0.2 percent. It had risen as much as 2.1 percent.

(Reporting by Rodrigo Campos, addiitonal reporting by Noel Randewich; Editing by Nick Zieminski and Steve Orlofsky)

NEW YORK (Reuters) – Global equity markets slumped on Tuesday, denting the recent recovery in riskier assets as oil prices tumbled on signs that a proposed deal to freeze output by major producers was not on the horizon.

After gains of more than 5 percent on Monday, which had helped push a gauge of world equities up more than 1 percent, both Brent and U.S. crude turned sharply lower after Saudi Oil Minister Ali Al-Naimi said he welcomed all sources of supply, while Iran was seen as unlikely to agree to an output cap.

The decline in crude weighed on both the energy and financial sectors on Wall Street. Concerns about bank exposure to the energy sector were highlighted by JP Morgan’s announcement that it will put aside an additional $500 million to cover potentially bad loans to energy companies.

Markets have been closely tethered to oil prices, which have been volatile based on the continually changing perceptions that an output deal could be reached.

“The markets are really worried that we are missing something here – that the global slowdown may be more significant than we are recognizing and that slowdown could be causing oil prices to drop,” said Tracie McMillion, head of asset allocation at Wells Fargo Private Bank in Winston-Salem, North Carolina.

U.S. crude futures settled down 4.6 percent at $31.87 a barrel and Brent settled 4.1 percent lower at $33.27 a barrel. The commodity had shown signs of stabilization above $30 a barrel recently on hopes a production freeze by major producers could be agreed upon.

The Dow Jones industrial average fell 188.88 points, or 1.14 percent, to 16,431.78, the S&P 500 lost 24.23 points, or 1.25 percent, to 1,921.27 and the Nasdaq Composite dropped 67.02 points, or 1.47 percent, to 4,503.58.

European shares also moved lower on the crude weakness, along with and disappointing updates from Standard Chartered, down 6.7 percent, and BHP Billiton, down 6.1 percent. A weak sentiment reading of German manufacturers also raised concerns about the health of the region’s largest economy.

Resources stocks, down 3.2 percent, weighed heavily on European equity indices after the world’s largest miner, BHP Billiton, posted its first loss in 16 years.

The pan-European FTSEurofirst 300 index of leading shares closed down 1.3 percent. MSCI’s index of world shares was lost 0.92 percent.

In currency markets, the British pound remained under pressure, and was down 2.7 percent on the past two sessions, its biggest two-day drop in six years, on worries Britain may leave the European Union. Sterling was last down 0.83 percent at 1.403.

The euro also fell to $1.0987 on Monday, its lowest in almost three weeks, on fears Brexit could undermine the European Union. It was last down 0.13 percent at $1.1012.

Investors’ shift towards safer ground on Tuesday pushed the dollar lower against the yen, down 0.7 percent to 112.10 yen after hitting a low of 111.75.

The dollar’s index against a basket of six major currencies was little changed, up 0.09 percent at 97.467

Benchmark 10-year U.S. Treasuries reversed earlier losses and were last up 8/32 in price to yield 1.7380 percent.

(Editing by Nick Zieminski)

NEW YORK (Reuters) – Global stocks rallied on Monday, backed by a rise in oil and commodity prices, while the British pound suffered its biggest one-day loss in nearly six years against the dollar on fears Britain would leave the European Union.

Sterling tumbled to a near seven-year low during the session after popular London Mayor Boris Johnson said he would campaign to leave the EU ahead of a June 23 referendum. The euro fell 0.9 percent.

Battered oil prices jumped as speculation about falling U.S. shale output helped feed the notion that crude prices may be bottoming after their 20-month collapse.

Benchmark Brent settled up 5.1 percent to $34.69 a barrel, while U.S. crude settled up 6.2 percent at $31.48 a barrel.

Stocks, whose performance has been tightly linked to oil prices, posted solid gains across major markets.

“It still seems like oil, for whatever reason, continues to be what everything is trading off of,” said Eric Kuby, chief investment officer at North Star Investment Management Corp in Chicago. “That’s the signal that the world is OK, that oil prices are going up.”

The Dow Jones industrial average rose 228.67 points, or 1.39 percent, to 16,620.66, the S&P 500 gained 27.72 points, or 1.45 percent, to 1,945.5 and the Nasdaq Composite added 66.18 points, or 1.47 percent, to 4,570.61.

All 10 major S&P sectors were higher, led by a 2.2 percent increase for the energy sector.

The gains built on last week’s strong performance after a poor overall start for U.S. equities in 2016.

“The fact that we held it on Friday and then went through a weekend and sustained and advanced it even more, I think is building optimism and maybe we’ve turned a corner,” said Jim Paulsen, chief investment officer at Wells Capital Management in Minneapolis.

The pan-European FTSEurofirst 300 share index rose 1.7 percent. Mining stocks were among the best performers, with Anglo American rising 10.8 percent, as the price of copper reached a two-week high.

Helped by mining shares, Britain’s FTSE 100 index rose 1.5 percent, despite concerns over a possible EU exit.

Stocks shrugged off a survey showing private sector business activity in the euro zone increased at its weakest pace in more than a year in February.

MSCI’s index of world shares rose 1.3 percent.

Worries about a possible British exit from the EU sent the euro to a near three-week low. Sterling fell 1.8 percent against the greenback and dropped as low as $1.4057.

“A Brexit would be bad for sterling, but it would also be bad for the euro,” said Neil Jones, Mizuho’s head of hedge fund sales in London.

The dollar was up 0.8 percent against a basket of six currencies.

U.S. Treasury prices ended lower as rising stock and oil prices reduced demand for safe haven debt.

Benchmark 10-year notes fell 5/32 in price to yield 1.77 percent, up from 1.75 percent late Friday.

Zinc prices surged to a four-month peak and other base metals also gained as investors’ appetite for risk increased while they also worried about potential shortages.

Gold fell 1.7 percent as the dollar strengthened and investor appetite for risk increased.

(Additional reporting by Karen Brettell and Dion Rabouin in New York, Nigel Stephenson and Jemima Kelly and Danilo Masoni in Milan; Editing by Catherine Evans, John Stonestreet and Nick Zieminski)

NEW YORK (Reuters) – Major world stock markets slipped on Friday, but still had their best week this year, as crude oil prices stabilized.

Yields on short-dated U.S. bond yields rose though after U.S. inflation data raised the possibility the Federal Reserve may raise interest again earlier than anticipated.

Crude oil prices slipped also on Friday but still posted gains for the week for the first time this month.

Advances in oil and equity prices this week were sparked by moves by oil producers, including Saudi Arabia and Russia, to cap output, but a record buildup in U.S. crude oil stockpiles kindled worries over persisting global oversupply.

The renewed weakness in oil prices on Friday affected U.S. stocks, with the S&P energy index closing 0.35 percent as the worst performer of the 10 major S&P indexes.

“We have seen oil come back off and that has put some pressure on the market,” said Walter Todd, chief investment officer at Greenwood Capital Associates in Greenwood, South Carolina.

MSCI’s index of world shares was 0.25 percent lower, but was up 3.7 percent for the week, its best since October.

“We have had a lot of very concerning economic data in the first six weeks of the year, and I think over the last few weeks we have seen a significant improvement in that data,” said Tony Roth, chief investment officer at Wilmington Trust in Wilmington, Delaware.

The Dow Jones industrial average fell 0.13 percent on Friday to 16,391.58, while the S&P 500 was little changed at 1,917.76, and the Nasdaq Composite added 0.38 percent to 4,504.43.

The S&P 500 index gained 2.8 percent for the week though, its best weekly performance since November.

The pan-European FTSEurofirst 300 index of leading shares lost 0.7 percent, weighed by weakness in oil, bank and auto shares, but was still up nearly 4 percent for the week.

Brent crude oil futures slumped 3.7 percent to settle at $33.01 a barrel while U.S. crude settled down 3.7 percent at $29.64. U.S. WTI crude was up 1.1 percent for the week.

The global oil market is oversupplied by around 1.8 million barrels per day, but that glut could be halved if a deal to freeze oil production at last month’s levels takes effect, a top Russian energy official said on Friday.

YIELDS RISE ON U.S. INFLATION DATA

Yields on benchmark 10-year Treasuries edged up to around 1.75 percent, while yields on shorter-dated U.S. two-year Treasury notes rose to 0.7459 percent.

U.S. underlying inflation in January rose by the most in nearly 4-1/2 years, according to data U.S. Labor Department data on Friday, suggesting the Federal Reserve could gradually raise interest rates this year as forecast in December.

However, following similar comments from other Fed officials in the past week, Cleveland Fed President Loretta Mester said on Friday that interest rates will likely need to remain accommodative for some time, while other officials maintain that weak inflation and global turbulence are enough reasons to pause on further hikes.

“While the data have been a mixed bag, fears of a recession have been overblown,” said Jennifer Vail, head of fixed income research at U.S. Bank Wealth Management in Portland, Oregon.

The Japanese yen rose against the U.S. dollar to $112.68 and the euro rose against the greenback also, trading up 0.2 percent at $1.1018. The U.S. dollar dipped against an index of major currencies.

After gains last year, in anticipation of the Federal Reserve interest rate rise in December, the U.S. dollar has weakened in recent weeks as expectations for further rate rises have declined.

The British pound strengthened late and was last up 0.28 percent to 1.4371 against the dollar after Lithuanian President Dalia Grybauskaite said in a tweet that European Union leaders agreed on Friday on a deal to keep Britain in the 28-nation bloc.

(Additional reporting by Lewis Krauskopf; Editing by Clive McKeef)

NEW YORK (Reuters) – U.S. and European shares rebounded from recent weakness on Friday, with reassuring U.S. retail sales data boosting sentiment, while U.S. crude prices rallied from more than 12-year lows.

Banking shares in the United States and Europe spiked, with the S&P financial index last up 3.4 percent and the STOXX 600 Europe Banks index gaining 5.6 percent.

The U.S. S&P 500 gained over 1 percent after five days of losses that had dropped it to its lowest level in two years on Thursday. In Europe, advances in shares of Deutsche Bank and its rival Commerzbank of 11.8 percent and 18 percent, respectively, helped European stocks rebound.

The FTSEurofirst 300 index of top European shares notched its biggest daily gain in five and a half months after hitting a two-and-a-half-year low on Thursday. The index was up 3.04 percent at 1,232.09.

The S&P financial index has fallen about 15 percent this year, and the European bank index nearly 25 percent, as worries over the impact of central banks’ negative interest rate policies on banks’ profitability intensified in recent days.

Commerce Department data showing U.S. retail sales excluding automobiles, gasoline, building materials and food services increased 0.6 percent in January also boosted optimism.

‘OVERWHELMING’ CHANCE OF RECESSION

“The market has gone from very little chance of recession to pricing in an overwhelming chance of recession despite the data not supporting that,” said Michael Jones, chief investment officer of RiverFront Investment Group in Richmond, Virginia.

“The more numbers you get like retail sales … the more this market can whipsaw people by heading right back up.”

An overnight drop in Asia shares limited gains in MSCI’s all-country world equity index. The index rose 2.61 points, or 0.74 percent, to 355.96.

On Thursday, it had closed more than 20 percent below its all-time high, confirming a bear market in global equity prices. Mainland China markets reopen on Monday after the Lunar New Year holiday.

On Wall Street, the Dow Jones industrial average was last up 226.72 points, or 1.45 percent, at 15,886.90. The S&P 500 was up 25.1 points, or 1.37 percent, at 1,854.18. The Nasdaq Composite was up 43.12 points, or 1.01 percent, at 4,309.96.

The S&P energy index was last up 1.7 percent. U.S. crude oil jumped as much as 13 percent on prospects for a coordinated production cut sparked by comments from the energy minister of OPEC member United Arab Emirates.

U.S. crude was last up 12 percent at $29.38 per barrel after hitting $26.05 a barrel on Thursday, the lowest in more than 12 years. Brent crude was last up nearly 10 percent at $33.03 a barrel.

Safe-haven 10-year Treasury notes were last down 30/32 in price to yield 1.75 percent after hitting 1.53 percent Thursday, their lowest yield since Aug. 2012.

The dollar rose after the U.S. retail sales data. The dollar index, which measures the greenback against a basket of six rivals, was last up 0.5 percent.

Spot gold was down $8.75 to $1,237.76 an ounce but was still set for its best week in four years.

(Additional reporting by Dion Rabouin and Tariro Mzezewa in New York, Libby George in London and Aastha Agnihotri in Bengaluru; Editing by Nick Zieminski and Bernadette Baum)

NEW YORK (Reuters) – Stock indexes worldwide fell on Thursday on fears over the health of the global economy and banking sector, with MSCI’s world stock index dropping to more than 20 percent below its all-time high, while safe-haven 10-year Treasury yields hit their lowest since 2012.

Concern over sluggish global growth and doubts over central banks’ ability to support the global economy pushed the U.S. benchmark S&P 500 index down 10.5 percent for the year. The FTSEurofirst 300 index of top European shares sank to its lowest level in 2-1/2 years.

The dollar hit its lowest against the safe-haven yen since October 2014, at 110.985 yen, and was on track for its worst week against the Japanese currency since 2008.

“There are mounting concerns about the ability of central banks to continue to prop up asset prices,” said Omer Esiner, chief market analyst at Commonwealth Foreign Exchange in Washington. “That’s part of why we’re seeing assets across the board come under pressure.”

Banks in Europe ended 6.3 percent lower, making them the worst-performing sector and widening their losses for the year to more than 28 percent. Shares of Societe Generale, France’s second-biggest bank, closed down 12.6 percent after disappointing results.

Worries also hit shares of U.S. banks, with the S&P financial index ending down about 3 percent. Concerns over profitability in a low-growth, low-interest rate environment have knocked confidence in the banking sector this week, particularly in Europe.

YELLEN

The declines came even as Federal Reserve Chair Janet Yellen sought to reassure investors in congressional testimony that the Fed will remain flexible in its approach. The markets, however, do not expect the Fed to raise rates further this year, compared with Fed forecasts that still point to more tightening.

“Credit has been signaling these concerns, and to some extent other markets, and particularly equity, have caught up with what credit had been telling them, which was: We’re really worried about global growth, we’re really worried that central banks are running out of ammunition,” said David Riley, head of credit strategy at BlueBay Asset Management in London.

Yields on benchmark 10-year U.S. Treasury notes hit 1.53 percent, their lowest level since August 2012, on the worries over global growth and the effectiveness of central bank policy.

MSCI’s all-country world equity index, which tracks shares in 45 nations, was last down 4.73 points, or 1.32 percent, at 353.35. The index hit its lowest level in more than 2-1/2 years and was last down more than 20 percent from an all-time high.

The Dow Jones industrial average ended down 254.56 points, or 1.6 percent, at 15,660.18. The S&P 500 lost 22.78 points, or 1.23 percent, at 1,829.08. The Nasdaq Composite dropped down 16.76 points, or 0.39 percent, to 4,266.84.

Europe’s broad FTSEurofirst 300 index closed down 3.68 percent at 1,195.76.

U.S. crude fell, hitting a 12-year low of $26.05 a barrel as domestic stocks grew and Goldman Sachs called for depressed prices until the second half of the year.

U.S. crude hit a more than 12-year low of $26.05 a barrel before settling down $1.24, or 4.52 percent, at $26.21 a barrel. Brent crude settled down 78 cents, or 2.53 percent, at $30.06 a barrel.

Safe-haven spot gold surged 5.3 percent to $1,260.60, the highest in a year. U.S. gold futures for April delivery settled up 4.5 percent at $1,247.80 per ounce.

(Additional reporting by Clara Denina, Simon Falush Kit Rees and Alistair Smout in London, Dion Rabouin, Tariro Mzezewa in New York, and Abhiram Nandakumar in Bengaluru; Editing by Bernadette Baum and Dan Grebler)