Global stocks extend bear market bounce as oil prices ease inflation fears

MILAN/TOKYO (Reuters) – World shares extended their bounce on Monday, building on Friday’s strong Wall Street close as off-peak oil prices helped sentiment improve and temper fears of prolonged inflation.

Strong morning gains in Europe and a rally across Asian markets after China further eased COVID-19 restrictions drove the MSCI’s benchmark for global stocks up for a third straight session, rising 0.5% by 0851 GMT.

Investors hope the oil prices slide from three-month peaks hit earlier in June could ease price pressures and allow the U.S. Federal Reserve to tighten policy less aggressively than initially feared, reducing the risk of an economic recession.