Stock markets mostly advanced in Europe and Asia on Friday, while oil prices fell after recent gains. US stock futures also edged higher following an unsettled session on Wall Street.
In early European trading, Germany’s DAX rose 0.7% to 24,975.62, France’s CAC 40 gained 0.8% to 7,789.91, and Britain’s FTSE 100 advanced 0.7% to 10,515.43.
Futures for the S&P 500 climbed 0.4%, while those for the Dow Jones Industrial Average rose 0.1%.
In Asia, Tokyo’s Nikkei 225 closed almost unchanged at 69,030.92. The Shanghai Composite edged up 0.1%, while Hong Kong’s Hang Seng jumped 1.6% to 24,152.44. Australia’s S&P/ASX 200 gained 0.6% to 8,716.60, and India’s Sensex rose 1.2%. Markets in South Korea and Taiwan remained closed.
China is scheduled to publish its latest economic growth figures next week.
US stocks fluctuated on Thursday as oil prices climbed and bond yields surged before easing later in the day. The S&P 500 fell 0.5%, marking its second consecutive loss after reaching a record high a day earlier. The Dow rose 0.1%, while the Nasdaq Composite dropped 1.3%, with technology stocks suffering the biggest losses.
Brent crude, the international benchmark, surged 4.1% to $104.28 a barrel. Prices have fluctuated between $96 and nearly $110 over the past month amid uncertainty over when the war with Iran will allow global energy supplies to return to normal.
Brent approached $106 a barrel on Thursday morning before retreating after US President Donald Trump said “productive discussions” were taking place with Iran. He also said the US military would not attack Iran before the November US elections.
Early Friday, Brent fell 1% to $103.28 a barrel, while US benchmark crude declined 0.8% to $90.75.
Bond yields have remained near their highest levels in years or decades, raising concerns about a potential slowdown in economic activity. The yield on the 10-year US Treasury initially climbed to 5.35% on Thursday before falling to 5.23%.
Yields eased after the US government sold $22 billion in 30-year Treasury bonds at an auction with a yield below 5.62%. The 30-year Treasury yield subsequently fell to 5.60% from 5.73% earlier in the morning.
The US federal budget deficit, which approached $2 trillion in the fiscal year ending September 30, has also weighed on markets amid concerns over rising government debt.
Among individual stocks, PepsiCo gained 3.7% after reporting quarterly revenue and profits that exceeded analysts’ expectations. However, losses among major technology companies offset those gains.
Nvidia, the world’s largest publicly traded company by market value, fell 2.9%, making it the biggest drag on the S&P 500. Broadcom dropped 4.3%, while Micron Technology declined 4.8%.
Artificial intelligence-related stocks face growing pressure to deliver strong growth to justify their high valuations following the sector’s recent surge.
“What was once a broad, buy-anything-with-an-AI-label momentum trade is becoming a much tougher contest between balance-sheet strength and ambition,” said Steven Innes of SPI Asset Management.
In currency trading early Friday, the US dollar rose to 158.37 Japanese yen from 157.89 yen. The euro traded at $1.1228, up from $1.1211.