Global shares jumped on Friday, while the dollar fell and oil soared as investors decreased their expectations of an aggressive interest rate hike by the Federal Reserve this month, and the U.S. spending data topped expectations. However, investors are still concerned that the global economy is heading for a recession as central banks hurry to combat soaring inflation with sharp interest rate hikes.
Salman Ahmed, global head of macro at Fidelity International, said, "We moved rapidly from a stagflationary set-up to more of a recession-dominated one, and very strong inflation is adding to fears that the Fed will need to do more front-loaded tightening."
