World markets: Bernanke comments fuel rebound

The Dow Jones Industrial Average banked its first triple-digit gain in three weeks on expectations that the US Federal Reserve stands ready to bolster growth.

The upward turn followed release of a letter from Federal Reserve chairman Ben Bernanke that saw scope for additional monetary easing to underpin the US economy

The Dow added 100.51 points, or 0.8%, to 13,157.97, rising for the first time this week.

Friday's gains erased much of Thursday's 115-point slide, reinvigorating a stalling rally that's driven the benchmark up almost 9% since early June.

The Dow lost ground on the week, however, dropping 87 points, or 0.7%, to snap a six-week string of weekly advances.

The S&P 500 index rose 0.7% to 141.13 and the Nasdaq Composite Index added 0.5% to 3069.79.

Telecommunications, healthcare and consumer-discretionary stocks were the S&P 500's best performers.

Verizon Communications led the Dow with its 2.2% jump with Kraft Foods closely behind, gaining 1.4%.

Other markets: Europe up, Asia down
A late-session rebound pushed European stocks into positive territory but an 11-week winning streak for the Stoxx Europe 600 index was broken.

The index rose 0.1%, to 268, after trading in negative territory most of Friday, but lost 1.8% on the week, its worst since the week ending June 1.

The UK's FTSE 100 index closed flat at 5776.60. On the week, the index shed 1.3%.

France's CAC-40 index rose 0.02%, at 3433.21, closing down 1.6% on the week.

Germany's DAX index gained 0.3%, to 6971.07, but sank 1% on the week.

In Asia, stocks fell, taking their cue from the Dow's 115-point drop on Thursday.

Japan's Nikkei Stock Average sank 1.2% to 9070.76 and Australia's S&P/ASX 200 dropped 0.8% to 4349.00.

Hong Kong's Hang Seng Index declined 1.3% to 19880.03, Korea's Kospi retreated 1.2% to 1919.81 and the Shanghai Composite lost 1% to 2092.10.

Commodities: Oil falls, gold rises
North Sea Brent crude oil futures fell more thanl 1% after rising 11.4% over the past month, outpacing gains in the US benchmark, which has gained 9.2% from a month ago to the highest levels since early May.

CE Brent for October was down 1.2%, or $US1.41, at $US113.60 a barrel, while Nymex crude was 9USc lower at $US96.18 a barrel.

Gold futures ended higher and returned to a four-month high, buoyed by hopes of fresh stimulus by global central banks and some renewed interest for physical gold.

Gold for December delivery advanced 10USc to settle at $US1672.90 an ounce in New York. On the week, gold gained 3.3%.