Stocks fell on Friday as traders wrestled with this week's surprisingly hawkish turn from major central banks in the fight against inflation, and as rising Omicron cases spark worries about the hit to the global economy.
Stock futures in Europe and the US rose along with equities in Asia on signs of a thaw in US-China tensions, with investors also looking ahead to a policy speech by Federal Reserve Chair Jerome Powell later in the week.
European stocks slumped at the end of a largely positive week for global equities dragged down by fears of a second wave of coronavirus cases and the stalemate in Washington over a new stimulus package for the US economy.
Asian stocks dipped on Wednesday on growing uncertainty over whether the US lawmakers would agree on an additional round of big fiscal stimulus to support an economy still struggling with the novel coronavirus.
Asian shares stumbled on Monday and oil prices slipped as fears of a second wave of coronavirus infections in Beijing sent investors scurrying for safe-havens while underwhelming data from China further weighed on sentiment.