Markets bounce but global economy faces “significant scarring”

Markets were mixed on Friday.

The S&P 500 jumped 1.3 percent and the STOXX Europe 600 rose 0.3 percent but the Nikkei 225 fell 0.8 percent.

Analysts' views on the direction of the market have been mixed.

“I suspect the bounce is a dead cat bounce,” said Naeem Aslam, AvaTrade’s chief market analyst.

However, Esty Dwek, head of global market strategy at Natixis Investment Managers, said that “the downside had become more limited given a still-bearish consensus, high cash levels, and a broadening rally”.

Meanwhile, a report on Friday showed that the UK economy contracted by a record 20.4 percent in April.

The International Monetary Fund’s Gita Gopinath said that the global economy is recovering more slowly than expected and faces “significant scarring”.