* World stocks heading for 6th week of gains
* European stocks up 0.1 percent, Japan 1.7 percent
* Economy worries hurt euro
By Jeremy Gaunt, European Investment Correspondent
LONDON, April 17 (Reuters) - World stocks steadied on Friday
but were still on track for a sixth consecutive week of gains,
while the euro fell on worries about the region's prospects.
MSCI's main world stock index <.MIWD00000PUS> was flat
despite modest gains in Europe and a rebound in Japan. But the
index was up 1.6 percent on the week, gaining around 28 percent
since a March 9 low.
U.S. financial services firm State Street said evidence was
building that big investors were buying into the rally,
particularly in U.S. and emerging market stocks.
"It seems the nightmare may now be ending. Markets have been
having quite a party of late," State Street said in a note.
"Institutional investors are backing this rally."
Nascent investor confidence has been encouraged by positive
results from the likes of JPMorgan and Google, while economic
data in some areas is improving. Citigroup <C.N> was to report
results later in the day.
A jump in Chinese industrial output in March has added to a
sense instilled by some U.S. indicators that the pace of
deterioration has slowed from the alarming rate of just a few
months ago.
European Central Bank President Jean-Claude Trichet said on
Friday the battered global economy faces a difficult year but
will begin a recovery in 2010. Other central bankers have also
noted some signs of stabilisation. []
European shares were volatile, with the pan-European
FTSEurofirst 300 <.FTEU3) up around 0.2 percent.
"The current development in the stock market is encouraging.
The short-term uptrend is very robust," German brokerage Close
Brothers Seydler said in a note.
Earlier, Japan's Nikkei <> gained 1.7 percent.
STRONG DOLLAR?
The euro fell against the dollar and the yen, dented by
other comments from Trichet and concerns about the weak outlook
for the euro zone economy.
Trichet said in Tokyo that he appreciated U.S. policymakers
saying a strong dollar was in the U.S. interests, and that to
say the euro is weak "doesn't reflect the current situation".
[]
The comments pushed the euro to a one-month low against the
dollar of $1.3065 on trading platform EBS.
Concerns that the euro zone economy, unlike the United
States, is yet to show any tentative signs of recovery also
weighed on the single currency.
Two-year euro zone government bond yields marked an 8-day
high, tracking softer U.S. Treasury prices <TYv1> and higher
bourses.
The two-year Schatz yield <EU2YT=RR> was up 4 basis points at
1.423 percent after marking an intraday high of 1.472 percent
and underperforming other issues.
The 10-year Bund yield <EU10YT=RR> was up 1 basis point at
3.185 percent.
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(Editing by Mike Peacock)
