European stocks have rebounded in early trade as global markets look to regain some ground after another bruising week.

An estimated $7 trillion has been wiped off the value of New York's S&P 500 index since the start of the year.

The index is on the cusp of a bear market - defined as a drop of 20% from its peak, which was reached early this year.

Investors are focused on the outlook for inflation and interest rates.

"It looks as if the volatility and uncertainty is here to stay for a little longer until inflation peaks and possibly until we get a bit more guidance on where rates are going to go, particularly in the US," Victoria Scholar, Head of Investment with Interactive Investor told Morning Ireland.

The extent of the rout on markets, as well as the wider global situation, is reflected in one recent market move.

Saudi oil giant Saudi Aramco has over taken Apple as the world's most valuable company.

"Aramco has been buoyed by higher oil prices and then on the other side in terms of Apple, we've seen lots of turmoil in the tech sector and that sent both stocks in opposite directions bringing Apple into second place," Victoria Scholar explained.

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Despite the gains on European markets so far today, the STOXX 600 index is set to post its fifth consecutive weekly decline.

"The risks are to the downside with huge jump in economic uncertainty and large real disposable income shocks for households," Deutsche Bank economists said in a note.

"Recession risk is rising. Ukraine war is the main concern in 2022. The main concern in 2023 is combined ECB/Fed tightening."