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Global stocks rebound despite unease over economy; dollar gains

  • MSCI’s ACWI posts longest losing streak since 1990
  • Dollar gains as investors turn risk-averse
  • U.S. Treasury yields slide as slowdown fears mount
  • Oil gains as supply risks outweigh economic worries
  • Graphic: Global asset performance

NEW YORK, May 20 (Reuters) – Global equity markets rebounded after the S&P 500 pared losses that briefly took it into bear market territory, and the dollar gained on Friday, as investor unease about Federal Reserve policy tightening to curb inflation kindled fears of a recession.

Shares rebounded earlier in Europe and Asia after China cut a key lending benchmark to bolster its weakening economy, helping initially to drive gains on Wall Street.

China cut its prime rate for five-year loans, which influences mortgage prices, by 15 basis points in a reduction that was sharper than expected as authorities seek to cushion the impact of an economic slowdown. read more

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