LONDON - World stocks rose on Friday and oil prices jumped more than 3 percent, taking the sting out of a week that has seen sentiment hit as deteriorating US-China relations added to worries over how fast economies could recover from the coronavirus shock.

Oil prices rose to their highest levels in more than a month LCOc1 on signs that demand from China is picking up.

European shares opened broadly higher, with stock markets in London, Paris and Frankfurt tracking overnight gains in US and Asian markets.

In the US, the Dow Jones Industrial Average fell 146.75 points, or 0.62 percent, to 23,478.59, the S&P 500 lost 22.38 points, or 0.78 percent, to 2,830.12 and the Nasdaq Composite dropped 82.30 points, or 0.92 percent, to 8,861.43 in early morning trade.

Data showing China’s industrial output in April rose 3.9 percent from a year earlier, expanding for the first time this year, bought comfort to market.

Still, after a bruising week, a broad measure of European stocks was set to end the week 3 percent lower - the biggest weekly fall since the mid-March rout in global stocks.

MSCI’s world stock index, a touch firmer on Friday, is down around 2.5 percent this week.

“After a brutal few days for stock markets, a late turnaround in banking and energy stocks saw US markets recover from their lowest levels this month, to closer higher for the first time this week last night,” said Michael Hewson, chief market analyst at CMC Markets.

“With Asia markets also having a positive session...markets here in Europe have opened higher as we come to the end of what is still likely to be the worst week for European stocks since early March.”

US Federal Reserve Chair Jerome Powell has brushed off the notion that the Fed could push rates below 0 percent after futures tied to Fed interest rate policy expectations recently began pricing a small chance of sub-zero US rates within the next year.

Two year US Treasury yields are trading at just 0.15 percent, while short-dated bond yields in Britain have dipped back below 0 percent this week.

Faced with an exceptional hit from the coronavirus crisis, central bankers are under intense pressure to do more to shore up battered economies.

The German economy contracted by 2.2 percent in the first quarter, its steepest three-month slump since the 2009 financial crisis as shops and factories were shut in March to contain the spread of the coronavirus, preliminary data showed on Friday.

Elsewhere, the dollar was a touch softer against major currencies. The euro was around 0.1 percent firmer at US$1.0815, while the dollar dipped 0.15 percent to 107.08 yen.

Britain's pound was about a fifth of a percent weaker against the euro and the dollar, with focus on talks between Britain and European Union leaders on their future relationship.