World stocks steadied on Friday after a volatile week, taking their lead from a stronger Wall Street as U.S. data tempered inflation fears, while the dollar approached three-month lows on reduced bets of early Federal Reserve rate hikes. Inflation worries have spooked markets after recent data, and Fed minutes on Wednesday suggested a possible change in policy towards tapering bond purchases. But on Thursday the Philadelphia Federal Reserve Bank said its business activity index fell to 31.5 in May from 50.2 in April, casting doubt on how fast the U.S. economy can continue to heat up.
