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Global stock index eyes biggest weekly loss since Dec

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Gold touches all-time high near $3,000 an ounce

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U.S. stocks rise after hitting correction

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German bond yields rise on prospects of fiscal deal

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Investors remain nervous over escalating global trade

tensions

(Updates prices to late afternoon, adds oil settlement levels)

By Sinéad Carew and Naomi Rovnick

NEW YORK/ LONDON, March 14 (Reuters) - U.S. equities

followed European stocks higher on Friday, angling to end a

bumpy week on a positive note, although safe-haven gold hit a

record high with investors still showing some signs of anxiety

about the economic impact of tariffs.

German government bond yields and

the euro

rose on Friday with German Chancellor-in-waiting Friedrich

Merz saying he had secured crucial backing of the Greens for a

massive increase in state borrowing

.

Germany's news also helped boost U.S. Treasury yields,

according to Garrett Melson, portfolio strategist at Natixis

Investment Managers.

The strategist attributed equity gains on Friday to the fact

that the S&P 500 confirmed it was in a correction on Thursday.

"It's a reflection of the pain we've already endured in

markets. It's been a sharp decline from the highs in

mid-February," said Melson.

"You're seeing some signs of it at least getting an

intermediate low and a little bit of a relief rally," he said.

"There's not really anything meaningful in the way of news to

really drive a rally other than just the technicals."

On Wall Street, at 02:43 p.m. the Dow Jones Industrial

Average rose 609.02 points, or 1.49%, to 41,422.59 while

the S&P 500 rose 104.46 points, or 1.89%, to 5,625.98.

The benchmark index had finished Thursday more than 10%

below its February record close after U.S. President Donald

Trump threatened to impose a 200% tariff on European wine and

spirit imports, the latest trade war escalation after Europe

retaliated against U.S. tariffs on steel and aluminium.

The S&P milestone came just a week after the Nasdaq

confirmed it was in a correction, also with tariff and growth

uncertainties, as well high valuations for megacap tech stocks

in play. On Friday, the Nasdaq Composite rose 405.39

points, or 2.34%, to 17,708.41.

MSCI's broadest gauge of global stocks rose

13.37 points, or 1.63%, to 834.96 on Friday but was still eyeing

its biggest weekly fall since December.

Earlier, the pan-European STOXX 600 index had closed

up 1.14%.

Also on Friday, Spot gold breached $3,000 an ounce

for the first time in early London trading before losing ground.

The precious metal is still up 13.7% year-to-date, as trade wars

and growth worries have boosted its safe-haven appeal.

However, its time at the record was fleeting with spot gold

last down 0.12% at $2,984.19 an ounce.

In fixed income, the yield on the benchmark German 10-year

Bunds was last at 2.873% after earlier rising as

high as 2.936%.

In U.S. Treasuries, yields rose as the stock market recovery

reduced safe-haven demand for U.S. government debt.

The yield on benchmark U.S. 10-year notes rose

3.2 basis points to 4.308%, from 4.276% late on Thursday.

The 2-year note yield, which typically moves in

step with interest rate expectations for the Federal Reserve,

rose 6.2 basis points to 4.015%, from 3.953% late on Thursday.

"What you've had over the past week or two is a repricing of

what's called the Trump put lower for equities, while at the

same time, understanding that tariffs are probably here to stay

in some form and aren't just a negotiating tactic," said Zachary

Griffiths, senior strategist at CreditSights.

In currencies, the euro gained broadly after the reports

about Germany. Against the dollar, the euro up 0.26% at

$1.088 while against the pound it gained 0.44% and

rose 0.56% against the Swiss franc.

Against the Japanese yen, the dollar strengthened

0.47% to 148.51 while against the Swiss franc, the

greenback strengthened 0.33% to 0.885, with support from hopes

the U.S. government would avoid a shutdown over the weekend.

Oil prices regained ground on Friday after falling sharply

in the previous session, as investors weighed diminishing

prospects of a quick end to the Ukraine war that could bring

back more Russian energy supplies to Western markets.

U.S. crude settled up 0.95% at $67.18 a barrel for

the session while Brent settled at $70.58 per barrel, up

1%, or 70 cents.

Earlier in Asia, MSCI's broadest index of Asia-Pacific

shares outside Japan closed up almost 1% but

lost almost 1.5% for the week.