Global stocks rebound but end week lower on virus fears

European and US stocks rebounded on Friday after a week in which enthusiasm waned as traders digested worries over the fast-spreading Covid-19 Delta variant, the Federal Reserve's taper plans and China's regulatory crackdown.

Asian markets continued to fall, however, with Hong Kong's main index down 5.8 percent for the week.

Oil prices fell further on concerns the Delta surge could lead to further closures and restrictions that dampen energy demand.

"We can't ignore the fact that this week has seen a bit of a shift in sentiment when it comes to optimism about the overall recovery story," said Michael Hewson, chief market analyst at CMC Markets UK.

On Wall Street, all major indices ended with gains of less than one percent, but were lower for the week.

Sentiment suffered after indications from the Federal Reserve it would begin to taper its stimulus this year, while investors have generally been on edge over unrest in Afghanistan and China's regulatory crackdown.

London stocks rose 0.4 percent amid news UK supermarket Morrisons accepted a £7.0 billion ($9.6 billion, 8.2 billion euro) takeover from US private equity firm Clayton, Dubilier & Rice.

The FTSE 100 shed 1.8 percent for the week.

Frankfurt added 0.3 percent on Friday, but gave up 1.1 percent over the week.

Paris, which rose 0.3 percent on Friday, finished the week 3.9 percent lower.

"Sentiment remains fragile for the moment, and with lighter trading volumes during August, more market volatility is extremely possible," said Richard Hunter, head of markets at Interactive Investor.

A speech by Fed boss Jerome Powell at next week's central banking conference at Jackson Hole, Wyoming, will be keenly watched for details on a timetable for tapering the central bank's massive bond buying program.

AJ Bell analyst Danni Hewson predicted the Jackson Hole event -- which will be held virtually given Covid concerns at the retreat -- would give "central bankers and other economic decision makers a chance to outline their plans for the next phase of the pandemic recovery."