Global stocks and the dollar edged up on Friday, erasing some losses from the previous day, as stronger-than-expected Chinese inflation data eased some concerns about the health of the world’s second-biggest economy.
The pound also found traction following recent weakness after the governor of the Bank of England said he was “not indifferent” to the foreign exchange rate.
September producer prices in China unexpectedly rose for the first time in nearly five years, while consumer inflation also beat expectations, setting the tone for equity markets globally.
European shares tracked Asian markets higher. The pan-European STOXX 600 was up 1.5 percent, helped by rallies in mining and banking stocks, while MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS ended up 0.6 percent.
E-mini S&P futures ESc1 were up 0.5 percent
However, equities were still set for their largest weekly drop in over a month after a week which has seen expectations of a Federal Reserve rate hike build and substantial volatility in commodity prices.
While the MSCI World .WORLD index was up 0.3 percent on Friday, it was down 1 percent for the week – its biggest weekly drop since early September.