Markets continued their resurgence on Friday on speculation Chinese authorities are buying local equities ahead of next week's World War II victory parade. Stronger than expected U.S. GDP data also underpinned gains, giving Asian stocks the biggest boost for almost a year. It's been a rollercoaster week for all asset classes, with global equities and commodities set to erase Monday's losses – despite a morning dip in Europe.
The MSCI All-Country World Index, which includes both emerging and developed equity markets, rose as much as 0.6%. On Monday it slumped almost 4%, the biggest drop in 4 years. The index is now on track for its first weekly gain in four. It's still down 10% from May's record.
Crude oil rose again after its biggest one-day increase in six years. WTI soared 10% on Thursday after U.S. economic growth beat forecasts and U.S. stockpiles declined. Crude is on track for its first weekly rise in nine. The eight-week losing run was the longest since 1986. The week started with oil dropping below $40 to a new 2009 low. Oil is still 30% below its June high on supply glut concerns.
The dollar is back in favor after two weeks of declines. The Bloomberg Dollar Spot Index, which tracks the greenback against 10 leading global currencies, is little-changed today but on track for a weekly rise. It's gained against all its G10 peers except the yen this week. Measures taken by China to stabilize its economy and stock market, as well as strong U.S. growth, has fueled speculation the Federal Reserve will raise interest rates this year. Traders increased to 54% the odds of a rate hike, from as low as 46% on Tuesday.
Mark Barton is a presenter on Bloomberg TV. Follow him on Twitter @markbartontv