Global stocks are rising, but remain on track for the sixth week of losses

Global stocks rose on Friday, but were on the verge of their longest series of weekly losses from the 2008 financial crisis as fears of inflation and economic slowdown continued to lurk in the markets.

The FTSE All World Index rose 2 percent after Wall Street and European stock markets rose, but remained on course for the sixth consecutive weekly decline.

The Wall Street S&P 500 benchmark, which bypassed the bear market on Thursday as it nearly fell to almost a fifth below its January high, added 2.2 percent on Friday.

The technology Nasdaq Composite rose 3.4%, but was still 25% lower for the year so far.

Some investors described Friday’s profits as rally at the bear marketrelating to short periods of optimism within a longer downward trend.

“Obviously it’s been a very difficult week and you’re getting these sessions in which the market is trying to recover,” said Antoine Lesnay, an investment strategist at SPDR’s State Street stock unit. “But I’m tempted to say we’re still in a bear market.”

Market sentiment has become “so bearishly positioned, no matter where you look, that there is a good chance we will see a recovery in weeks to come,” said Florian Ielpo, a portfolio manager with many assets at Lombard Odier.

“Will it be sustainable until the end of the year?” We strongly disagree with that, “he added. “There is only one way out of this inflationary period that we are currently experiencing, and that is a slowdown in economic activity.”

US Federal Reserve Chairman Jay Powell warn on Thursday, that reducing inflation to the 2 percent target may not be achieved without “some pain.” The Fed, whose monetary policy is being pursued by central banks around the world, raised its key interest rate by 0.5 percentage points last week and is expected to raise it by the same amount in June, July and September.

Data on Wednesday shown Consumer price inflation in the United States rose at an annual rate of 8.3% in April, down from the previous month, but still at levels last seen in the early 1980s.

The short-term rise in US government bonds also reversed on Friday, as asylum-driven asylum buying returned to traders calculating the effect of sustained inflation on fixed-rate securities.

The yield on 10-year government securities, which is moving back against the price of the reference debt security, increased by 0.09 percentage points to 2.9%.

US bonds, the world’s most important debt market, have been volatile in recent weeks as investors have stayed out and dealers found it harder to compare sellers with buyers.

“All measures suggest that liquidity in government securities markets is very limited,” said Paul O’Connor, head of Janus Henderson’s UK-based multiple assets team. “This reflects changes in investor psychology between rising inflation and slowing growth,” he added, “with many now doubting whether the level of interest rate increases that have been assessed is excessive.”

In Europe, the Stoxx 600 regional index added 1.9 percent. Asian markets also rose earlier in the day, with Hong Kong’s Hang Seng index up 2.7 percent and Japan’s Nikkei 225 closing 2.6 percent higher.

The dollar index, which measures greenbacks against six major currencies, lost 0.2 percent, but remained close to a 20-year high. Brent crude rose 3.2 percent to $ 110.9 a barrel.

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