* S&P 500 gains about 2 pct after five days of losses
* Top European share index notches best gain in 5-1/2 months
* U.S., European financial shares rally
* 10-yr Treasury yields rise from lowest since Aug. 2012
* Oil prices rally; U.S. crude off over 12-year lows
(Updates to close of U.S. markets)
By Sam Forgione
NEW YORK, Feb 12 (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 .SPSY closing up 4 percent and the
STOXX 600 Europe Banks index .SX7P gaining 5.6 percent.
The U.S. S&P 500 .SPX gained about 2 percent after five
days of losses that had dropped it to its lowest level in two
years on Thursday, but still posted its second straight weekly
decline.
In Europe, advances in shares of Deutsche Bank DBKGn.DE
and its rival Commerzbank CBKG.DE of 11.8 percent and 18
percent, respectively, helped European stocks rebound.
The FTSEurofirst 300 .FTEU3 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 ended
up 3.04 percent at 1,232.09.
The S&P financial index has fallen more than 14 percent this
year, and the European bank index nearly 25 percent, battered by
intensified worries about the impact of central banks' negative
interest rate policies on banks' profitability.
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.
"Europe was strong, especially the banks, and that appeared
to have some positive carryover effect on banking stocks here in
the U.S.," said John Carey, portfolio manager at Pioneer
Investment Management in Boston.
MSCI's all-country world equity index .MIWD00000PUS , which
on Thursday closed more than 20 percent below its all-time high
to confirm a bear market in global equities, rebounded 3.9
points, or 1.1 percent, to 357.25. Mainland China markets reopen
on Monday after the Lunar New Year holiday.
U.S. stock and bond markets will be closed Monday for the
Presidents Day holiday.
On Friday the Dow Jones industrial average .DJI ended up
313.66 points, or 2 percent, at 15,973.84. The S&P 500 .SPX
closed up 35.7 points, or 1.95 percent, at 1,864.78. The Nasdaq
Composite .IXIC closed up 70.68 points, or 1.66 percent, at
4,337.51.
The S&P energy index .SPNY ended up 2.6 percent. Oil
prices surged on prospects for a coordinated production cut
sparked by comments from the energy minister of OPEC member
United Arab Emirates.
U.S. crude CLc1 settled up 12.32 percent at $29.44 a
barrel after hitting $26.05 a barrel on Thursday, a more than
12-year low. Brent crude LCOc1 settled up 10.98 percent at
$33.36 a barrel.
Safe-haven 10-year Treasury notes US10YT=RR were last down
27/32 in price to yield 1.74 percent after hitting 1.53 percent
Thursday, their lowest yield since Aug. 2012. L2N15R194
"The upbeat retail numbers provided a rebound and the
fear-trade we saw all week seems to have moved on for now," said
Kathy Jones, chief fixed income strategist at Charles Schwab (N:SCHW) &
Co. in New York.
The dollar index, which measures the greenback against a
basket of six rivals .DXY , was last up 0.4 percent.
Spot gold XAU= was down 0.7 percent at $1,237.66 an ounce,
but has risen 5.5 percent this week, on track for the biggest
weekly gain since October 2011.
Currencies vs dollar http://link.reuters.com/tak27s
Commodities performance http://link.reuters.com/rac73w
World interest rates: http://link.reuters.com/xyb96s
Euro zone debt crisis http://r.reuters.com/hyb65p
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