* Investors rediscover risk appetite
* Yen eases back vs dollar
* Oil climb lifts stocks in U.S., Europe
(Updates with U.S. market open, changes dateline, byline, adds
quote)
By Chuck Mikolajczak
NEW YORK, April 8 (Reuters) - Global equity markets
rebounded on Friday, paced by a strong rise in oil prices, but
were still on track for a weekly decline, while the dollar
managed to stem its slide against the yen.
Stocks on Wall Street and in Europe were lifted by energy
names, as both Brent and U.S. crude oil saw gains of more than 5
percent on hopes a global excess of crude could be nearing a
tipping point. Economic indicators from the U.S. and Germany
cast a positive light on growth in fuel demand.
Global benchmark Brent crude futures LCOc1 jumped 5.3
percent to $41.53 per barrel, and were up more than 7 percent on
the week. U.S. crude CLc1 surged 6.2 percent to $39.55, for a
7.4 percent weekly gain.
The STOXX 600 Europe Oil and Gas .SXEP index was 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.
The Dow Jones industrial average .DJI rose 88.62 points,
or 0.51 percent, to 17,630.58, the S&P 500 .SPX gained 11.97
points, or 0.59 percent, to 2,053.88 and the Nasdaq Composite
.IXIC added 14.88 points, or 0.31 percent, to 4,863.24.
"You've kind of got this story of we are still expanding but
there is a litany of risks, or weak points, to the expansion
that could easily become much larger very quickly," said Jason
Pride, director of investment strategy at Glenmede Investment
and Wealth Management in Philadelphia. "That is why the market
is hanging on every word from every Fed speaker, every
indication that oil prices are going up or going down."
Despite Friday's gains, the S&P 500 was on course for its
biggest weekly decline in two months.
MSCI's index of world shares .MIWD00000PUS rose 0.95
percent but was down 0.3 percent for the week. The FTSEurofirst
300 climbed .FTEU3 1.2 percent, but was still on pace for its
fourth straight weekly decline, which would be its longest
losing streak since October 2014.
Much of the volatility this week has been fueled by the
yen's surge against the dollar, which caught many market
participants off-guard and increased speculation Tokyo could
intervene in the currency market to halt the rally.
The dollar briefly traded above 109.00 yen JPY= ,
recovering from its first break below 108.00 since October 2014
the previous day. Japan's Finance Minister Taro Aso said the
government would take steps to counter "one-sided" moves in the
yen in either direction.
The dollar was last up 0.4 percent at 108.66 yen, with a
weekly fall of 2.7 percent. On Thursday it fell as low as 107.67
yen.
Sharp appreciation of the safe-haven yen against the dollar
is often a warning sign of broader financial market stress and
investor risk aversion, which has been exacerbated this week by
growing uncertainty surrounding the U.S. economic and policy
outlook.
Federal Reserve Chair Janet Yellen, in a conversation with
former Fed chairmen on Thursday, said the U.S. economy is on a
solid course and still on track to warrant further interest rate
hikes.
New York Fed President William Dudley on Friday said the
central bank must approach further rate hikes cautiously and
gradually because of lingering external risks to the U.S.
economy, despite some strength at home and welcome hints of
inflation.
The comments helped push benchmark 10-year Treasuries
US10YT=RR down 12/32 in price to yield 1.7306 percent after
hitting a low six-week of 1.685 percent on Thursday.
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Global assets in 2016 http://link.reuters.com/dub25t
Commodities performance http://link.reuters.com/rac73w
Currencies vs dollar http://link.reuters.com/tak27s
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