LIVE MARKETS-Stocks sailing into the weekend, thank you Powell

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STOCKS SAILING INTO THE WEEKEND, THANK YOU POWELL (0702 GMT)

World stock markets are sailing into the weekend after
Federal Reserve chief Jerome Powell eased inflation fears.

Powell, late on Thursday, signalled the Fed is nowhere near
to reducing its support for the U.S. economy, a message he
reiterated the second time in as many days. An expected rise in
prices this year is likely temporary, while a rise in COVID-19
cases could slow the recovery, he warned.

Indeed, the number of Americans filing new claims for
unemployment benefits unexpectedly rose last week, data showed.

Powell's dovish comments sent U.S. Treasury yields down,
encouraging stock bulls to push the S&P 500 to a record close.

While stock market futures are largely flat this morning,
equities look set to end the week on a strong note.

The S&P 500 is up 2% this week, London's FTSE is up around
3% and set for the biggest weekly rise in three months, while
MSCI's world stock index is hovering near record highs.

Deutsche Bank notes the VIX index of volatility -- the
so-called fear gauge of Wall Street - closed beneath 17 points
on Thursday for the first time since the pandemic began last
year.

It's not so good for the dollar, however. The greenback is
headed for its worst week of the year versus major peers as the
Fed's highly accommodative policy stance weighs.

Elsewhere, the IMF said late Thursday the world economy is
recovering faster than expected from the COVID-19 crisis, but
warned that a spike in interest rates could be especially
painful for emerging economies.

Key developments that should provide more direction to
markets on Friday:

- China's factory gate price rose at their fastest annual
pace since July 2018 in March as the world's second-largest
economy gathers momentum.

- Shares of Chinese fintech firm Linklogis, backed by tech
giant Tencent, opened 10% higher in HK debut.

- Germany Feb industrial output down 1.6%, exports rise 0.9%
m/m

- RBA financial stability review says monitoring rising
property prices

- Central bank speakers include ECB Vice President de
Guindos and Dallas Fed President Kaplan.
- ECB's Isabel Schnabel warns against attempts to block the
EU Recovery Fund

(Dhara Ranasinghe)

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STOXX ON TRACK FOR SIXTH WEEKLY GAIN (0530 GMT)

After yesterday's record highs, European shares are seen
opening in the black, with the STOXX 600 index on track
for six consecutive weeks of gains.

Optimism is growing around a global stimulus-fuelled
economic rebound, with the Fed planning to keep its super-easy
policy in place even as data shows the U.S. economy is kicking
into higher gear.

Financial spreadbetters at IG expect London's FTSE to open 3
points higher at 6,945, Frankfurt's DAX to open 6 points lower
at 15,197 and Paris' CAC to open 1 point higher at 6,167.

(Joice Alves)

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