Markets Right Now: Stocks open higher on Wall Street

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Stocks in Singapore and other Southeast Asian countries were also lower.

The wider worry, which has sent stock markets across Europe sharply lower on Friday, is that Deutsche Bank may prove to be a "Lehman moment" for the European banking system.

However, the German government faces a delicate balancing act with a deeper crisis for Deutsche Bank potentially spilling over into its economy. Traders are now pricing in a 56 per cent chance of higher borrowing costs in December.

Spain's 10-year bond yields fell 4 basis points to 0.88 percent.

Deutsche Bank's chief executive has made an appeal for calm, telling employees that worries over the bank's financial health are vastly overstated.

Germany's Finance Ministry declined to comment on Friday on a report that Deutsche Bank (DBKGn.DE) was close to a $5.4 billion (£4.17 billion) settlement with US authorities over alleged misselling of mortgage-backed securities.

Late Thursday CEO John Cryan tried to calm investors. He reiterated the bank's robust capital position and also highlighted hundreds of billions of euros in liquidity Deutsche could get its hands on, if needed.

Shares received another boost and closed up 6% after a report claimed that Deutsche Bank had reached a deal to settle legal claims in the US for a smaller amount than expected.

Having initially fallen 8 percent, the shares rallied to close more than 6 percent higher on hopes the bank will be able to negotiate down the massive cost of settling a US investigation.

Brent crude was last down $0.25, or 0.51 percent, at $48.99 a barrel, but US crude was last up $0.30, or up 0.63 percent, at $48.13 per barrel. Brent crude, the worldwide benchmark, picked up 21 cents to $50.02 a barrel in London.

Oil prices surged this week after the nations of OPEC, which collectively produce more than one-third of the world's oil, surprised investors with an agreement on a small cut in production.

Goldman Sachs' 1.5 percent increase gave the Dow its biggest boost.

Costco was the top percentage gainer on the S&P, rising 4.5% after the company reported a better-than-expected quarterly profit. The firm also makes its own bets on certain stocks. Procter & Gamble gained $1.37, or 1.6 per cent, to $89.60 and Wal-Mart rose $1.29, or 1.8 per cent, to $72.02.

US stocks are climbing Friday and regaining the previous day's losses. It named Rajeev Mahta, the former head of its IT Services business, as its new president. The stock fell $9.27, or 16.9 percent, to $45.73.

Major stock indexes set records this quarter thanks mostly to tech stocks.

The Standard & Poor's 500 index gained 10 points, or 0.5 percent, to 2,161. The second-largest tech company, Microsoft, is up 12 per cent this quarter and Google parent Alphabet leaped 14 per cent.

With positive turnaround in stock prices, traders reduced their safe-haven holdings of low-yielding USA and German government bonds.

Asian equities fell the most in nearly three weeks, with stocks in Japan and South Korea dropping 1.3 percent and 1 percent respectively.

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