Europe leads global stocks rebound

Global stocks rallied Friday, with European equities especially strong, as markets put aside worries about higher US interest rates and the "Brexit" vote next month.

"Risk appetite has returned to equity markets," said Mike van Dulken, head of research at traders Accendo Markets.

London's benchmark FTSE 100 index and the Paris CAC 40 both rallied 1.7 percent, while Frankfurt's DAX 30 index won 1.2 percent.

US stocks also rose, with the S&P 500 climbing 0.6 percent and the Nasdaq 1.2 percent after a strong earnings report from semiconductor chip supplier Applied Materials lifted the other chip-oriented stocks.

Global stocks had slumped on Thursday as traders reacted to concerns about a possible US rate hike next month.

But investors appeared to cast those anxieties aside for the time being, along with concerns about the June 23 British referendum on whether to exit the European Union.

"People were under-invested," said Mace Blicksilver, director of Marblehead Asset Management.

"I don't want to read too much into it. It's a pretty good bounce, there's no question, but it's hard to imagine we'll start a bull market again here."

Investors were following a meeting in Japan of finance ministers and central bankers from the G7 economies.

Divisions over reigniting global growth were set to surface in Japan Friday, with US Treasury Secretary Jacob Lew expected to stand firm over in response to Japan's threat to force down the yen.

On Friday, the dollar retreated a bit against the euro following this week's surge, but edged higher against the yen.

Oil prices dipped as the forest fires menacing Canada's oil sands region were contained.

Some analysts say market volatility could pick up amid speculation over whether the Fed will raise rates at its June 14-15 meeting.

Some see the uncertainty about Brexit as a major hindrance to the Fed hiking rates just eight days earlier.

"We don't think the Fed will risk raising the fed funds rate a week before the 'Brexit' referendum if it doesn't have some solid assurances that the 'Remain' vote is likely to prevail," Briefing.com analyst Patrick O'Hare said Friday.

"A rate hike by the Fed on June 15 followed by a winning vote to leave the EU on June 23 would be a double whammy for global markets that would likely create too much fallout for the Fed's comfort level."

- Key figures around 2100 GMT -

New York - Dow: UP 0.4 percent at 17,500.94 (close)

New York - S&P 500: UP 0.6 percent at 2,052.32 (close)

New York - Nasdaq: UP 1.2 percent at 4,769.56 (close)

London - FTSE 100: UP 1.7 percent at 6,156.32 (close)

Frankfurt - DAX 30: UP 1.2 percent at 9,916.02 (close)

Paris - CAC 40: UP 1.7 percent at 4,353.90 (close)

EURO STOXX 50: UP 1.4 percent at 2,960.76

Tokyo: Nikkei 225: UP 0.5 percent at 16,736.35 (close)

Shanghai - Composite: UP 0.6 percent at 2,825.48 (close)

Hong Kong - Hang Seng: UP 0.8 percent at 19,852.20 (close)

Euro/dollar: UP at $1.1220 from $1.1203 on Thursday

Dollar/yen: UP 110.15 at yen from 109.96 yen