World equities rise on bounce in U.S., European markets
* Wall Street rallies at end of roller coaster week
* Crypto world stabilizes, bitcoin rallies after stablecoin slide
* Oil jumps 4% as U.S. gasoline prices hit record high
* U.S. yields gain as market angst eases a bit
By Elizabeth Dilts Marshall
NEW YORK, May 13 (Reuters) - Global shares rose on Friday as Wall Street rallied to end a volatile week of trading, while oil jumped 4% on the back of record-high U.S. gas prices.
Global markets and U.S. stocks were down sharply most of this week as investors grew anxious about the possibility of recession. The S&P 500 index .SPX is off nearly 20% from its all-time high in January and was close to a bear market on Thursday.
But investors' fears over whether U.S. Federal Reserve Chair Jerome Powell can accomplish a "soft landing" - bringing inflation down while keeping the U.S. economy growing - appeared to ease at least temporarily on Friday.
MSCI's gauge of stocks across the globe .MIWD00000PUS gained 2.30% at 4:07 p.m. ET (2007 GMT), after hitting its lowest since November 2020 on Thursday. The pan-European STOXX 600 index .STOXX rose 2.14%.
According to preliminary data, the S&P 500 .SPX gained 94.57 points, or 2.41%, to end at 4,024.65 points, while the Nasdaq Composite .IXIC gained 436.61 points, or 3.84%, to 11,807.57. The Dow Jones Industrial Average .DJI rose 466.43 points, or 1.47%, to 32,196.73.
Despite Friday's gains, the S&P 500 and the Nasdaq posted their sixth consecutive weekly loss, and the Dow notched its seventh consecutive weekly dip.
Emerging market stocks rose 1.83%. MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS rallied 2.01% from Thursday's 22-month closing low. Japan's Nikkei .N225 rose 2.64%.
"Stocks were ready to rebound as some investors remain hopeful the Fed will deliver a soft landing, while others are ready to buy the dip," said Edward Moya, analyst at OANDA.
Cryptocurrencies steadied on Friday, with bitcoin recovering from a 16-month low after a volatile week dominated by the collapse in value of TerraUSD, a so-called stablecoin.
Bitcoin BTC=BTSP , the largest cryptocurrency by market value, rose 3.5% to $29,884, rebounding from a December 2020 low of $25,400 hit on Thursday. Bitcoin remains far below week-earlier levels of around $40,000 and is on track for a record seventh consecutive weekly loss.
Oil prices jumped 4% as U.S. gasoline prices jumped to a record high and China looked ready to ease pandemic restrictions.
Brent LCOc1 futures rose $4.10, or 3.8%, to settle at $111.55 a barrel. U.S. West Texas Intermediate (WTI) crude CLc1 rose $4.36, or 4.1%, to settle at $110.49.
Markets are likely to experience a short-term rebound before resuming the sell-off which has sent Wall Street's Nasdaq tech index .NDX down over 25% since the beginning of the year, BofA analysts wrote in a weekly strategy note.
Investors liquidated global equity funds worth $10.53 billion in the week ended May 11, compared with $1.65 billion of net selling in the previous week, according to Refinitiv Lipper.
In an interview late on Thursday, Powell said the battle to control inflation would "include some pain," and he repeated his expectation of half-percentage-point interest rate rises at each of the Fed's next two policy meetings.
Headline inflation in the euro zone will fall in the second half of the year but so-called core prices, which strip out food and energy, will keep rising, the European Central Bank's vice-president Luis de Guindos said on Friday.
The dollar was lower on Friday but remained on track for a weekly gain. The dollar index =USD fell 0.2%, with the euro EUR= up 0.21% to $1.0401.
The Japanese yen weakened 0.77% versus the greenback at 129.32 per dollar, while sterling GBP= was last trading at $1.2232, up 0.27% on the day.
The moves higher in equities were mirrored in U.S. Treasuries, with the benchmark U.S. 10-year yield US10YT=RR edging up to 2.9367% from a close of 2.817% on Thursday.
The policy-sensitive 2-year yield US2YT=RR was 2.5986%, from a close of 2.522%.
Gold fell more than 1% on Friday and is set for its fourth straight weekly decline, as the dollar's strength sapped appetite for bullion. Spot gold XAU= dropped 0.8% to $1,807.79 an ounce. U.S. gold futures GCc1 fell 0.59% to $1,807.40 an ounce.
Global assets Link
Global currencies vs. dollar Link
Emerging markets Link
MSCI All Country World Index Market Cap Link
S&P 500 set for a sixth straight week of falls Link
Reporting by Elizabeth Dilts Marshall; Additional reporting by
Carolyn Cohn in London and Andrew Galbraith in Shanghai and
Dhara Ranasinghe in London; Editing by Jane Merriman, Nick
Zieminski and Richard Chang
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.