Global stock markets recover

NEW YORK, New York (AFP) —Global stock markets rose on Friday as investors put economic growth fears and trade jitters to one side, deciding that they had had enough drama and losses for one week.

“We’re ending a turbulent week on a more positive note as exhausted traders the world over head into the weekend in a more buoyant mood,” said Craig Erlam, senior market analyst at the Oanda trading group.

Equities have had a volatile five days, during which US-China trade talk hopes came and went and economic data and bond yields pointed to a possible worldwide downturn.

On Wall Street, the Dow on Wednesday suffered its worst day of the year, before recovering slightly on Thursday, and bouncing back strongly on Friday.

The index gained 1.2 percent, as investors found relief in hope for progress in the US-China trade war, and housing data offered enough good news not to ruin the party, despite a disappointing report on consumer sentiment, but was still down for the week.

“In the last couple of days, the sellers have been exhausted,” said Maris Ogg of Tower Bridge Advisors. “The volatility continues. But I don’t think this is the beginning of a trend.”

Investors also were cheered after Der Spiegel reported that the German government was ready to boost public spending to head off any coming recession — something many economists have been urging.

The week’s most nerve-wracking event was a so-called inversion of the yield curve in the US debt market that Erlam said “has spooked a lot of people.”

The yield on the 10-year US Treasury bond slid Wednesday below the yield on the two-year note, while the 30-year yield fell below two percent for the first time ever.