* Deutsche stock recovers on report of reduced U.S. settlement
* Brent crude slips after rally on OPEC agreement to cut output
* U.S. bond yields rise as investors pare safe-haven holdings (Updates market action, adds quote)
By Richard Leong
NEW YORK, Sept 30 (Reuters) - Stock prices across major markets rose on Friday, while the euro stabilized as Deutsche Bank's shares recovered from record lows on a report it is close to a deal to reduce a massive U.S. settlement over charges related to selling toxic mortgage bonds.
Brent crude prices fell as traders booked profits on a rally underpinned by an OPEC agreement to reduce output for the first time in eight years to address global oversupply. German government bond yields rose as investors trimmed holdings in reaction to the gains on Wall Street and in European equity markets. are very much being driven by headline risks at Deutsche Bank ," said Gennadiy Goldberg, interest rates strategist at TD Securities in New York.
Deutsche Bank AG's U.S.-listed shares were last up 15 percent at $13.205 DB.N but they have lost 10.4 percent for the month. Its Frankfurt-listed shares DBKGn.DE were up 6 percent, rebounding from a record low of 9.898 euros earlier Friday. reported on Friday Germany's largest lender is near an agreement with U.S. officials to pay $5.4 billion to settle charges. Germany's largest lender had said it would fight a $14=billion demand from the U.S. Department of Justice.
The heavier amount had raised investor fears about Deutsche Bank's stability and whether it would be able to raise the cash to pay the settlement.
The Dow Jones industrial average .DJI was up 203.64 points, or 1.12 percent, to 18,347.09, the S&P 500 .SPX was 22.1 points, or 1.03 percent, higher at 2,173.23 and the Nasdaq Composite .IXIC was up 53.14 points, or 1.01 percent, to 5,322.29. S&P financial index .SPSY was up 1.7 percent, while the STOXX Europe Banks index .SX7P was up 0.6 percent.
Europe's broad FTSEurofirst 300 index .FTEU3 eked out a 0.05 percent gain, at 1,350.66 after falling as much as 1.7 percent. MSCI world equity index .MIWD00000PUS , which tracks shares in 45 nations, rose 1.33 points or 0.32 percent, to 418.99.
In the currency market, the euro EUR= was last up 0.13 percent, at $1.1237, rebounding from a nine-day low of $1.1153 earlier Friday.
The dollar index .DXY was down 0.08 percent at 95.459.
Brent crude LCOc1 settled down 18 cents or 0.37 percent lower at $49.06 a barrel, but U.S. crude CLc1 settled 41 cents or 0.86 percent higher at $48.24.
With the turnaround in stock prices, traders reduced their safe-haven holdings of low-yielding U.S. and German government bonds.
The yield on benchmark 10-year Treasury notes was up 5 basis points at 1.605 percent, while the 10-year German Bund yield was little changed at -0.118 percent, according to Reuters data. US10YT=RR DE10YT=RR
Spot gold prices XAU= fell $5.19 or 0.39 percent, to $1,314.86 an ounce. GOL/
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Global assets in 2016
http://reut.rs/1WAiOSC Currencies in 2016
http://link.reuters.com/tak27s European bank woes
http://tmsnrt.rs/2du8iw4 Emerging markets in 2016
http://reut.rs/1ZKAaO6
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