Stocks recoup most of week's sell-off as nerves steady

In Europe, the STOXX index of 600 companies was up 0.6%, with the loss for the week all but erased

Nerves calmed following a volatile week that saw a mass unwinding of currency carry trades in response to the Bank of Japan's surprise rate hike late last month. Picture: Kiyoshi Ota/Bloomberg

Global shares extended gains on Friday to erase nearly all of their losses from a big sell-off earlier in the week, with investors betting on the US economy avoiding a hard landing as Fed policymakers signalled rate cuts as soon as September.

Wall Street stock index futures NQcv1, EScv1 were about 0.3% firmer, with no major US data expected on Friday as nerves calmed following a volatile week that saw a mass unwinding of currency carry trades in response to the Bank of Japan's surprise rate hike late last month.