Stocks get that Friday feeling as stimulus trumps growth concern

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Stocks get that Friday feeling as stimulus trumps growth concern

By Jamie McGeever | Reuters

LONDON (Reuters) - Global stocks rose and bond yields fell on Friday, as investors shrugged off slowing global growth and focused instead on the continued stimulus provided by the world's major central banks.

Wall Street's record high on Thursday lifted Asian stocks on Friday, a day that will be packed with key European and U.S. economic data as well as speeches from Federal Reserve chair Janet Yellen and European Central Bank president Mario Draghi.

China's main index leapt nearly 3 percent to a fresh 7-year high, rounding off a weekly gain of 8 percent, its best week this year. Boosted by hopes of further central bank stimulus, it has risen 45 percent in only six weeks.

European shares struggled to match that, but the leading index of European shares was still poised for its biggest gain in six weeks and Germany's DAX its best week since January.

A batch of soft manufacturing data on Thursday from the United States, China and Germany pointed to sluggish global growth but cemented investor hopes that central banks will continue to do all they can to support activity.

To that end, Yellen and Draghi will take center stage on Friday. Earlier this week Fed meeting minutes appeared to push the timing of the first U.S. rate hike out to late 2015, while the ECB's Benoit Coeure said the ECB could increase its bond purchases in the near-term.

"Risk assets continue to edge higher ... and Draghi is set to make a speech. Listen out for further assurance of the QE program running until September 2016 but more importantly any clues as to inflation expectations," said Angus Campbell, senior markets analyst at FxPro in London.

In early trade the FTSEuroFirst 300 index (.FTEU3), Germany's DaX and France's CAC 40 (.FCHI) were all flat on the day. Britain's FTSE 100 (.FTSE) was up 0.3 percent.

Earlier, MSCI's broadest index of Asia-Pacific shares outside Japan rose 1 percent and Japan's Nikkei rose 0.3 percent. Japanese stocks have been boosted this week by data showing stronger-than-expected first quarter growth. The Bank of Japan kept its policy as widely expected.

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