DALLAS — America’s rediscovered prowess in oil production is shaking up old notions about the impact of higher crude prices on the U.S. economy.

Global stock markets mostly rose Friday, with London’s equity market benefiting from a weaker pound, as optimism on the US economic outlook outweighed lingering trade war worries.

European equities were all solidly higher at the close. US stocks were mixed, with the Dow rising to a second straight record and the Nasdaq retreating.

It has been an unnerving time for investors with markets showing no clear direction. This month, the benchmark Sensex has gained or lost more than 300 points on six of the 13 trading days.

Friday was particularly volatile, with the Sensex seeing a 1,500-point swing — amid sharp correction in financial stocks — before closing 280 points lower. The immediate trigger was the uncertainty surrounding the future of IL&FS and tighter liquidity conditions. The India VIX, a measure of investors’ perception about the risk of sharp swings based on options prices, rose about 10 per cent to 15.4.

LONDON – Investors returned to equities in droves this week as they became convinced higher U.S.-China trade tariffs would cause only limited damage to the global economy, while greater risk appetite helped this year’s laggards rebound sharply.