Global stock markets advanced on Friday as bargain hunters snapped up shares after a turbulent week of sharp losses, the result of concerns about rising inflation and interest rates.
European stock markets recovered some ground on Friday, following Thursday’s massive sell-off, and after a steadier overnight performance on Wall Street.
Asian stocks also moved higher after another round of dizzying declines.
Equities had been in a downward spiral since Monday, when United States Federal Reserve chairperson Ben Bernanke delivered an unexpectedly strong inflation warning, which investors took as a sign that the Fed was not yet done with its series of US rate hikes.
But some dealers are beginning to take the view that the sell-off has been excessive.
”What equity markets fear is a material loss in earnings momentum if the Fed continues to raise rates,” said Mike Lenhoff, analyst with Brewin Dolphin.
”Our judgement is that there will not be a material loss in earnings momentum.
He added: ”Those who share our sentiments should look on the present as a buying opportunity.”
In Friday’s European trading, the French CAC 40 index of leading shares won 1,53% to 4 756,15 points.
The Paris market had tumbled by 2,91% the previous day to 4 684,3 points — the lowest finish since the end of 2005.
Frankfurt’s DAX 30 won 1,36% to 5 456,48 points on Friday, after plunging 2,90% on Thursday.
Meanwhile London’s FTSE 100 index jumped 1,33% to 5 637 points, having slumped by 2,51% the day before.
The DJ Euro Stoxx 50 index of leading eurozone shares, meanwhile, leapt by 1,36% to 3 509,33 points on Friday.
The euro stood at $1,2659.
In Wall Street on Thursday, US shares had clawed their way back from heavy losses and finished mixed after a White House forecast on US economic growth eased market jitters about a sharp slowdown.
Japanese share prices on Friday broke a four-day losing streak after a jump in domestic machinery orders provided much-needed relief to investors sweating over US inflation, dealers said.
In London, mining stocks led the charge after a bloodbath the previous day, which was brought on by the falling price of metals such as copper and gold.
The share price of Xstrata jumped 3,97% to 1 887 pence, Kazakhmys leapt 2,83% to 1 034,5 pence and Anglo American soared 3,14% to 1 903 pence.
Across in Frankfurt, shares in ThyssenKrupp, the German steel and heavy industry giant, climbed by 3,18% to €24,69.
And in Paris trading, European steelmaker Arcelor rose 4,52% to €33,55.
In US trade on Thursday, the Dow Jones Industrial Average, after falling 173 points in early trade, managed a gain of 0,07% to close at 10 938,82 points.
The other main indexes also erased big losses, but ended mixed.
The tech-heavy Nasdaq composite finished down 0,30% at 2 145,32 points after sliding more than 40 points.
The broad-market Standard and Poor’s 500 index eked out a gain of 0,14% to 1 257,93 points after trading down more than 20 points.
In Asia on Friday, Tokyo’s benchmark Nikkei-225 index finished 0,81% higher at 14 750,84 points, a day after slumping below 15 000 points for the first time in six months on worries about rising US rates.
Hong Kong’s key Hang Seng Index closed 1,16% higher at 15 628,69 points on a technical rebound led by China Mobile and HSBC after three straight days of falls. – Sapa-AFP