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- Global stocks jump on expectations of central bank stimulus
- Dollar ends flat
- Oil edges higher but OPEC outlook caps gains
- Gold dips 1% as equities firm
Oil prices
Oil prices recovered from a two-day drop as expectations of further stimulus by central banks helped to ease recession concerns. But oil's gains were capped over OPEC's downbeat outlook on oil demand for the rest of 2019.
In a monthly report, OPEC cut its forecast for global oil demand growth in 2019 by 40,000 barrels per day (bpd) to 1.10 million bpd and indicated the market will be in slight surplus in 2020.
"OPEC killed the golden goose. We've had some little rallies back into the green, as market tries to follow equities higher, but the fundamentals in the report are so bearish that it caps the rallies," Reuters quoted Bob Yawger, director of futures at Mizuho in New York as saying.
US crude rose 40 cents to settle at $54.87 a barrel, having dropped 1.4 percent in the previous session.
Brent crude was ended the session up 41 cents, or 0.7 percent, at $58.64 a barrel, after falling 2.1 percent on Thursday and 3 percent the previous day.
Middle East markets
Most Middle East stock markets dropped on Thursday as disappointing economic signals from China and Europe coupled with an inverted US bond yield curve triggered fears that the global economy was speeding toward recession.
In Dubai, the index was down 1.3 percent led by real estate stocks. The emirate's blue-chip developer Emaar Properties shed 1.9 percent while DAMAC Properties fell 3.2 percent.
The Abu Dhabi index was flat as a 1.1 percent gain in market heavyweight First Abu Dhabi Bank offset losses in real estate sector.
Qatar's index dropped as much as 2.4 percent, but it clawed back some losses to close 0.6 percent lower after the central bank said Qatar's economic growth would accelerate over the next two years over expectations of stable oil prices and continued strong exports.
Egypt's index closed 1.7 percent lower ending its four-day winning streak. The index jumped in the previous two sessions on news that the country's headline inflation rate fell to its lowest in nearly four years.
Saudi Arabia and Oman will resume trading from today after remaining closed for their week-long Eid holiday.
Global stocks
US and European stocks surged on Friday on expectations the European Central Bank will cut interest rates but the dollar pared gains against the euro after a report said the German government was prepared to take on new debt to lift the economy.
Technology shares led Wall Street's advance but US stocks posted a third straight week of declines, battered by the US-China trade row and an "inversion" of 2- and 10-year bond yields that sparked fears of a recession.
The Dow Jones Industrial Average rose 306.62 points, or 1.2 percent, to 25,886.01. The S&P 500 gained 41.08 points, or 1.44 percent, to 2,888.68 and the Nasdaq Composite added 129.38 points, or 1.67 percent, to 7,895.99.
According to Reuters, MSCI's gauge of stock performance in 47 countries gained 1.18 percent and its emerging market rose 0.69 percent. In Europe, the FTSEurofirst 300 index of leading regional shares closed 1.23 percent.
Forex
The dollar ended roughly flat on Friday as worries tied to trade tensions and a Federal Reserve rate cut weighed on consumer sentiment and a report that Germany may run a deficit to boost growth lifted the euro.
Germany would be prepared to ditch its balanced budget rule and take on new debt to counter a possible recession, Der Spiegel magazine reported on Friday. The news lifted the euro against the dollar, but the single currency nevertheless remained 0.14 percent lower on the day at $1.1091, Reuters reported.
Precious metals
Gold suffered on Friday as investors locked in profit and equities recovered. However, global economic slowdown fears and lack of clarity on the US-China trade war kept the metal on track for its third consecutive weekly gain.
Spot gold was down 0.6 percent at $1,513.80 per ounce as of 0729 GMT, but is up 1.2 percent so far this week after rising in the previous two weeks.
US gold futures dipped 0.3 percent to $1,525.50 an ounce.
Silver slipped 0.7 percent at $17.15 per ounce but was on track for a second consecutive weekly gain. Platinum fell 0.3 percent to $836.36 an ounce, while palladium rose 0.3 percent to $1,448.52 an ounce.
(Reporting by Seban Scaria seban.scaria@refinitiv.com; editing by Mily Chakrabarty)
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