* Equities, commodities rebound loses steam
* China central bank injects liquidity into mkt
* German inflation data seen setting ECB meeting tone
* Bull market "ageing" but very much alive -Citi
* Wall Street set to open lower
By Lionel Laurent
LONDON, Aug 28 (Reuters) - A white-knuckle ride for global
markets this week looked set to end with a whimper on Friday,
with equities and commodities giving up some of their
eye-popping bounces as investors turned their focus back to
central banks' ability to avert deflation.
While insignificant compared to the near-10 percent drops
and rebounds seen on some markets this week, the choppy trade
left some blue-chip European indexes on track to end the week
slightly lower - even as emerging markets, the epicentre of
global growth worries, were set for a higher finish.
Wall Street was also set to open lower, stock index futures
indicated SPc1 ESc1 .
China's central bank injected 60 billion yuan ($9.39
billion) into money markets on Friday, the second such move this
week, while German inflation data, showing harmonised consumner
prices at 0.1 percent year-on-year in August, is likely to set
the tone for the European Central Bank's meeting next Thursday
as deflationary pressures rise around the world.
Although global equities are back to where they were a week
ago, having recouped their losses from a bruising sell-off
driven by worries over China's economic slowdown, strategists
have cut end-of-year market forecasts and data for Aug. 20-26
showed a record $28 billion in outflows from equity funds.
"Current equity and bond yields suggest that investors are
shifting towards pricing in a global recession ... We think that
such fears are premature," Citi strategists wrote in a note to
clients, describing the central-bank-driven bull market of the
past six years as one that was "ageing" but very much alive.
The MSCI All-Country World index .MIWD00000PUS was up 0.2
percent on the day and also on the week.
The pan-European FTSEurofirst 300 .FTEU3 index was down
0.9 percent, with benchmark indexes in London, Paris and
Frankfurt down 0.6 to 0.8 percent.
Brent crude LCOc1 fell 47 cents to $47.09 per barrel, and
U.S. crude also fell CLc1 , pulling back from their biggest
one-day bounce since 2009 on Thursday.
Global oil markets have fallen by a third since May and are
still well under half their value of a year ago thanks to
oversupply and sluggish demand. ID:nL4N1132PZ
The greenback was flat against a basket of six major
currencies .DXY , while German 10-year yields fell 2.1 basis
points to 0.71 percent.
Emerging markets were big winners, with the MSCI emerging
markets equity index .MSCIEF up 0.7 percent and some fund
managers saying signs of value had begun to appear.
"The bull market in shares is getting long in the tooth but
QE (quantitative easing) is still a major factor for markets in
Europe, the U.S. and Japan ... Policymakers are also likely to
defer planned rises in interest rates," said John
Chatfeild-Roberts, head of the Jupiter Independent Funds Team.
(Editing by Gareth Jones)