GLOBAL MARKETS-Shares and bond yields rebound; dollar shows strength

* Economic optimism countered by worries about China-U.S.
tensions
* Euro/dollar lowest since Nov on divergent COVID outlooks
* Oil settles as efforts to refloat beached Suez tanker
continue
* Turkey's lira set for worst week since 2018 after cbank
sacking

By Marc Jones
LONDON, March 26 (Reuters) - World shares and the dollar
zig-zagged higher on Friday, as hopes for economic recovery and
the week's easing of global bond market yields helped lift the
mood.
As the last full week of a hectic first quarter drew to a
close, traders were still watching the world's most costly
traffic jam build up in the Suez canal and the global COVID-19
case count rising again.
Asian stocks had clawed off a three-month low overnight as
Chinese markets rebounded from their latest U.S. relationship
worries while a near 3% jump in commodity stocks and weak euro
EUR= put Europe .STOXX on course for a fourth straight
weekly rise. .EU
Euro zone bond yields edged up but benchmark German bonds
were set for their best weekly performance in 3-1/2 months as
the bloc's coronavirus woes supported its safe-haven assets.
GVD/EUR
The euro's struggles are part of that too but the dollar
bulls are on the charge again with the U.S. vaccine programme
ramping up. The greenback's rise on Friday meant it had almost
clawed back all its post-U.S. election fall. Emerging markets
currencies have had their worst run of the year this week.
"We left 2020 with the validation of the consensus view the
dollar would weaken," said the chief investment officer at
Indosuez Wealth Management, Vincent Manuel.
"We have woken up in 2021 facing the reality that the U.S.
is growing much quicker than Europe... so we have a massive
divergence".
Weekly money flow data from Bank of America showed global
investors have been darting for safety amid this week's drama.
They pumped $45.6 billion into cash funds, the largest since
April 2020 when COVID-19 was spreading like wildfire.

The end of the week news flow has been slightly more
friendly though.
U.S. Labor Department data on Thursday showed claims for
unemployment benefits dropped to a one-year low last week, a
sign that the U.S. economy is on the verge of stronger growth as
the public health situation improves. U.S. President Joe Biden's first formal news conference was
a boost too as he said he would double his vaccination rollout
plan after reaching the previous goal of 100 million shots 42
days ahead of schedule. STRIFE
Turkey's markets continued to settle after the lira's 9%
slump triggered by President Tayyip Erdogan's latest central
bank chief sacking.
Bluechip Chinese stocks .CSI300 rebounded more than 2% too
after a three-day losing streak, which, like emerging market
shares generally .MSCIEF , had left them at the lowest level of
the year.
"All the sanctions (on China) so far have been largely
symbolic and should have little economic impact. But the
Sino-U.S. confrontation is affecting market sentiment. It could
take some time for them to come to any compromise," said
Yasutada Suzuki, head of emerging market investment at Sumitomo
Mitsui Bank.
The dollar also rose to a new nine-month high on the
Japanese yen of 109.44 yen JPY= . The euro licked its wounds at
$1.1794 EUR= after falling to a four-month low on Thursday.
The ongoing efforts to dislodge a beached tanker in the Suez
canal saw oil prices rebound a tad from a 4% drop
on Thursday, though they are on course for their third straight
week of losses on worries about further reduction in demand.
O/R
In addition to Europe, major developing economies such as
Brazil and India are also struggling with a resurgence in
COVID-19 cases.
Brent LCOc1 was at $62.62, up 1.08%, U.S. crude CLc1 was
last up 1.33% at $59.35 per barrel, gold was flat and copper,
though more than 1% higher on the day, was still in its $8,600 -
$9,200 a tonne recent range. /MCU3=LX
Reeling from the blockage in the Suez, shipping rates for
oil product tankers have nearly doubled this week, and several
vessels were diverted away from the vital waterway. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Global assets http://tmsnrt.rs/2jvdmXl
Global currencies vs. dollar http://tmsnrt.rs/2egbfVh
Emerging markets http://tmsnrt.rs/2ihRugV
MSCI All Country World Index Market Cap http://tmsnrt.rs/2EmTD6j
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