ECONOMY & MARKETS

Just as it seemed that Wall Street would be heading into a foruth day of steep declines on inflation fears and higher interest rates across the globe, investors rallied Thursday to end the day nearly flat.

U.S. stock market futures were drifting Wednesday on concerns the hangover from Federal Reserve's Chairman Ben Bernanke's hawkish interest-rate comments may linger, with seemingly little else on the economic or corporate news front to capture markets' attention.

U.S. stock futures pointed to a slightly higher market open on Wednesday, helped by upward momentum late in the previous session, but investors fretted about higher interest rates after a series of warnings about inflation from Federal Reserve officials this week.

U.S. investors will watch next week to see if the latest employment numbers temper inflation expectations, without sharply dimming the outlook for corporate profit growth, giving stocks a chance to bounce back from May's sharp sell-off.

Leading UK shares closed higher on Friday but finished the week with a moderate loss as the market's recent choppy trading pattern, sparked by inflation and interest rate jitters, persisted.

Britain's leading shares bounced into positive territory on Wednesday, reversing direction from initial losses as consolidation hopes in the utility sector boosted stocks such as International Power, while insurer Friends Provident, rose after an analyst upgrade and financials generally added support.

Almost everywhere investors turn, signs of inflationary pressures make it less likely the Federal Reserve will pause from two years of interest rate increases.

Stocks lost ground for a second straight session Friday when the dollar weakened and bonds prices fell after data showing higher import prices stoked the market's inflation worries.

British blue chips swung to a closing loss on Thursday and erased earlier gains, dragged lower by a drop in mobile phone giant Vodafone and losses on Wall Street.

The U.S. dollar may be losing its luster, but stock investors aren't losing much sleep over its weakness. In fact, analysts say, its recent slide would make mega-cap industrial stocks such as Caterpillar Inc. and Boeing Co. more appealing.

Mexico's benchmark 28-day T-bill yield edged lower to 7.02 percent on Tuesday as investors bet the central bank will leave interest rates steady.

Britain's FTSE 100 index closed sharply higher on Friday as fresh bid talk buoyed mortgage bank Alliance & Leicester, while the Midcap 250 index hit a fresh high led by brewer Greene King.

The Nikkei average fell 1.29 percent on Friday as shares of Sony Corp. tumbled after it forecast a sharp profit decline in the current year and as a stronger yen raised concern of a drop in earnings at exporters such as Kyocera Corp.

U.S. stocks rose on Thursday after Federal Reserve Chairman Ben Bernanke said the Fed may pause in its 22-month campaign of raising borrowing costs, lifting shares of interest-rate sensitive companies such as banks and utilities.

U.S. stock futures extended gains on Tuesday as quarterly results from companies including chemical manufacturer DuPont Co. fueled optimism about corporate profit growth despite near-record oil prices.

Britain's leading shares were barely weaker on Monday, propped up by gains in oil companies and miners such as BG Group as prices of crude oil and some metals traded near record levels, although most heavyweight sectors such as banks and pharmaceuticals eased.

China's yuan currency can probably begin to rise more swiftly given the reforms Beijing has put in place, but gradualism is still the guiding philosophy, the head of China's central bank said on Saturday.

The dollar slid about 1 percent to three month lows against the yen in early trade on Monday after Group of Seven countries singled out China in their call for more flexibility in exchange rates. The dollar slid about 1 percent to three month lows against the yen in early trade on Monday after Group of Seven countries singled out China in their call for more flexibility in exchange rates.

Corporate earnings news will likely determine the course of the stock market next week as investors scan profit outlooks for enough strength to propel the Dow industrials the few hundred more points the index needs for a record high.

Aging directors, diversification needs, fund-raising fatigue, and a current lull in the buyout market are prompting large private equity firms to take a serious look at launching publicly traded funds.

Britain's FTSE 100 index saw earlier gains evaporate and ended lower on Thursday after mining stocks including Xstrata and Rio Tinto tracked a steep fall in commodities prices and handed back some of the sector's striking gains.

Prices of oil, base metals and precious metals were slashed on Thursday afternoon as cross-asset profit-taking kicked in, traders said.

U.S. stocks climbed on Tuesday as strong corporate earnings and evidence of tame inflation in March countered a rise in the price of oil to a record high.

U.S. stocks fell on Friday as interest-rate worries outweighed expectations that stronger-than-expected jobs creation and tame wage inflation in March would lead to growing profits.

The dollar was broadly flat on Monday after paring early gains on news growth in the U.S. manufacturing sector last month was slower than financial markets had anticipated.

U.S. government debt prices fell Monday as a mixed bag of economic data reinforced expectations the Fed could raise interest rates at least once more.

India's Prime Minister Manmohan Singh announced earlier this month that his government is looking to make its rupee more convertible. India is considering the policy change to stimulate foreign investment and to reach its self-stated goal of 10 percent annual GDP growth.