On Wednesday, European stocks were muted, as the rebound in global stock markets could not be postponed to the second trading session.

The Stoxx 600 regional stock index fought for direction in early deals, while London’s FTSE 100 fell 0.1 percent. In Asia, Hong Kong’s Hang Seng index fell 0.1 percent and Tokyo’s Nikkei 225 closed 0.9 percent higher.

The S&P 500 index of U.S. blue-chip stocks rose 2 percent on Tuesday as traders returned to riskier assets after the worst series of weekly stock losses since 2008. stronger than expected retail sales figures suggest that consumers are still spending, even though inflation has remained at a four-decade high.

But some analysts warn it has been a bear market rally where long-running downturns in stock markets are interspersed with brief bursts of relief as investors remain nervous about rising interest rates boosting the global economy slowdown.

“Investor sentiment was supported by news of stronger-than-expected US retail sales,” said Johan Haveus, chief strategist at Nordic Bank SEB. But, he added, “although many have speculated on a rally in the bear stock market after a sharp decline in recent weeks, it is still early.”

S&P, which is the leader in other global stock markets, bypassed the bear market last week, which is defined as a 20 percent decline from the recent peak. The FTSE All World Index of Developed and Emerging Markets also traded about 15 percent below its level at the beginning of the year.

The gloomy mood in the markets was formed when the major central banks, which at the beginning of the coronavirus pandemic raised prices on loans and bought government bonds at unprecedented rates, began to cancel their support policies.

On Tuesday, the chairman of the US Federal Reserve Jay Powell said The world’s most influential interest rate setter will continue to raise borrowing costs until it sees “clear and convincing” evidence that U.S. inflation in excess of 8 percent is declining.

The Fed has raised interest rates by 0.75 percentage points since March and announced a further half-point increase at its next two monetary policy meetings. It will also start cutting its balance sheet, which rose to $ 9 trillion after in March 2020, from next month, it began unlimited purchases of Treasury bonds and mortgage bonds.

After the financial markets took advantage of “huge liquidity support” from central banks, “the buyer is ultimately out the door,” said Neil Birel, chief investment officer of Premier Miton Investors.

“Market sentiment is really volatile and we are getting days of relief,” he added. “But I don’t feel there is any real impetus behind any of these stocks.”

Futures trading fell S&P by 0.5 percent at the beginning of the deal in New York, and Nasdaq 100-focused technology – by 0.6 percent.

Government bond markets stabilized on Wednesday after exposure to sellg pressure on the previous session when traders returned to stocks.

The yield on 10-year Treasury bonds, which underpin global debt pricing, was 2.97 percent. The equivalent yield of the German Bund was also stable at 1.04 percent.

Sterling fell 0.5 percent against the dollar to $ 1.24 after a rally on Tuesday caused by improved risk-taking. The euro fell 0.3 percent to $ 1.05.

Brent crude rose 0.5 percent to $ 112.48 a barrel.