GLOBAL MARKETS-U.S. stocks rebound following rout, bond yields edge down

* Euro STOXX 600 .STOXX down 1.5%
* MSCI world equity index down 0.6%, set for fourth day of
losses
* Shock rise in U.S. CPI stirs fear of Fed tapering
* Treasury yields, rise after jump
* Bitcoin recovers after Tesla puts a hold on acceptance
* World stocks heading for worst week of year
* Metals, crop prices fall after rampant run
* Graphic: Global asset performance http://tmsnrt.rs/2yaDPgn
* Graphic: World FX rates http://tmsnrt.rs/2egbfVh

By Koh Gui Qing and Tom Wilson
NEW YORK/LONDON, May 13 (Reuters) - U.S. shares rebounded on
Thursday after falling for three consecutive days and benchmark
Treasury yields edged lower as investors snapped up technology
stocks and shrugged off worries over rising prices, for now.
By early morning, the Dow Jones Industrial Average .DJI
rose 1.5%, the S&P 500 .SPX was up 1.4%, and the Nasdaq
Composite .IXIC jumped 1.3%.
Yields on 10-year Treasuries US10YT=TWEB , which had
climbed 7 basis points overnight in the biggest daily rise in
two months, edged lower in early trade to stand at 1.6744%.
"We're certainly oversold here, so remember our 5-percent
maxim: buy every S&P 500 down 5 percent close after the first
one," said Nicholas Colas, co-founder of DataTrek Research.
Against a basket of major peers, the dollar =USD was
steady at 90.695, holding gains eked out on Wednesday when the
greenback strengthened on data that showed U.S.
faster-than-expected acceleration of inflation in April. USD/
Before Thursday's recovery in U.S. stocks, world stock
markets were spiraling toward their worst week of the year as
the rise in U.S. inflation worried bond markets and as red-hot
metals, crop and cryptocurrency prices all suffered sudden
stops.
Asia took a pounding overnight, London's FTSE .FTSE was
down 2% before lunch, bond, commodity and U.S. futures markets
were all deep in the red and Elon Musk and Tesla were no longer
accepting bitcoin. .EU .N MET/ While there were plenty of idiosyncrasies, the overarching
worry was that rising inflation pressure in the United States
might force the Federal Reserve to start turning off its cheap
money that has been driving markets rapidly higher.
"Inflation pressures are going to be rising, and they're not
going to be temporary," said Jeremy Gatto, investment manager at
Unigestion. "What does that mean? Effectively that (interest)
rates will be rising."
Oil prices fell on Thursday despite a sharp drop in U.S.
crude inventories, as market participants took profits following
days of buying spurred by a cold snap in the largest U.S.
energy-producing state.
Brent crude LCOc1 fell 2.4% 2020, while U.S. West Texas
Intermediate crude CLc1 dropped 2.6%.
For the cryptonites, there was a ray of light as bitcoin
BTC=BTSP steadied at $50,407 after a 13% drop when Elon Musk
said Tesla TSLA.O would stop accepting it as payment because
of the amount of fossil fuels that go into bitcoin "mining."
Bitcoin is created by high-powered computers competing
against other machines to solve complex mathematical puzzles. At
current rates the process is estimated to devour about the same
amount of energy annually as the Netherlands did in 2019.
Ether ETH=BTSP , the world's second-largest cryptocurrency,
gained 1% to $3,852.43.

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Asia stock markets https://tmsnrt.rs/2zpUAr4
Asia-Pacific valuations https://tmsnrt.rs/2Dr2BQA
U.S. core inflation https://tmsnrt.rs/2RNcYWC
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>