* MSCI world index heading for 1.8% weekly rise
* European stocks up 0.35%, S&P futures increase 0.53%
* Brent crude eyeing 3% weekly rise
* German 10-year bond yields above 1%
LONDON/TOKYO Aug 12 (Reuters) - World stocks headed for a
fourth straight week of gains on Friday as investors scaled back
views on how far U.S. interest rates and inflation can climb,
while oil recouped some of the previous week's losses.
A slight easing of inflation readings drove global stocks
higher and capped a rising dollar this week, though a string of
Fed speakers dampened expectations of the central bank going
slow on further policy tightening.
"Inflation seems to have turned and that was positive, the
growth stocks are outperforming again," said Matthias Scheiber,
global head of portfolio management for multi-asset solutions at
"I wouldn't be surprised if we have a good finish into the
weekend," he added, though he said investors remained cautious.
MSCI's world stock index was up 0.1% and was
showing a 1.8% rise on the week.
S&P futures gained 0.53% after the S&P index
closed down 0.07%.
European stocks rose 0.35% and were heading for
weekly gains of more than 1%. Britain's FTSE climbed
0.56% and was eyeing a near-1% rise on the week.
Investors are focused on further inflation data later on
Friday, with the publication of the University of Michigan's
preliminary survey of consumers for August.
Odds of a 75 basis points U.S. hike in September were as
high as 68% earlier in the week, but are now around 34%, where
they were a week ago.
However, San Francisco Federal Reserve Bank president Mary
Daly said on Thursday that while a 50 basis point rate hike next
month "makes sense" given economic data, she'd be open to a
bigger hike if necessary. The rate is currently in the
Chicago Fed President Charles Evans said he believed the Fed
would likely need to lift its policy rate to 3.25%-3.5% this
year and to 3.75%-4% by the end of next year, in line with what
Fed Chair Jerome Powell signalled after the Fed's latest meeting
In addition, Minneapolis Fed President Neel Kashkari said he
hadn't "seen anything that changes" the need to raise the Fed's
policy rate to 3.9% by year-end and to 4.4% by the end of 2023.
"There are too many uncertainties to know the path of oil
and other CPI prices ahead, but the peak of inflation is clearly
behind us," Nikko Asset Management chief global strategist John
Vail wrote in a note.
"The key question is how far and how fast it will fall. We
believe inflation will be quite sticky and central banks will
need to be more hawkish than consensus."
The dollar gained 0.24% against a basket of currencies
while the euro lost 0.26% to $1.0289. Sterling
dropped 0.36% against the dollar to $1.2170 after data
showing British GDP fell 0.1% on the quarter.
U.S. 10-year Treasury yields were trading at
2.888% after hitting a near-three-week high of 2.906%.
Benchmark German 10-year government bond yields
rose above 1% for the first time in two weeks.
MSCI's broadest index of Asia-Pacific shares outside Japan
gained 0.16%, heading for a weekly gain of 1%.
Hong Kong's Hang Seng index rose 0.46%, but Chinese
blue-chip stocks dipped 0.1%.
Japan's Nikkei was the major outlier, surging 2.62%
to its highest level since January as markets reopened following
a national holiday.
Brent crude was headed for a weekly climb of more than 3%,
recouping part of last week's 14% tumble, as recession fears
eased, though an uncertain demand outlook capped gains.
Brent crude oil futures rose 0.41% to $100.01 a
barrel. U.S. West Texas Intermediate crude gained 0.18%
Spot gold was down 0.1% at $1,787 an ounce.
(Editing by Bradley Perrett)