In European Equity Markets stocks closed higher on Friday on the back of China-U.S. trade talks. The pan-European Stoxx 600 ended up by 1.42 percent with clear gains in basic resources and autos on the back of optimism regarding U.S.-China trade talks. France's Eutelstat fell to the bottom of the index amid earnings news. Shares of the Paris-listed stock tumbled 6.5 percent after reporting a fall in first-half net revenue. Germany's Scout24 jumped 10 percent to the top of the European benchmark. It comes after Hellman & Friedman and Blackstone offered to buy the online classifieds.
In Currency Markets the U.S. dollar was modestly higher on Friday, steadying after it whipsawed following a report showing import price data weakened for the third straight month in January, the latest sign of weak inflation pressures. The dollar index was 0.2 percent higher. The euro extended its fall to a three-month low after Benoit Coeure, a member of the ECB executive board, said a new round of cheap multiyear loans to banks was possible. The single currency was headed for a second week of losses and was down 1.7 percent year to date on weaker-than-expected euro zone data.
In Commodities Markets brent crude oil climbed above $65 a barrel to its highest this year as OPEC-led supply cuts and this week’s announcement of a higher than expected cut by Saudi Arabia encouraged investors. The international oil benchmark reached $65.52 on Friday, the 95 cent gain equating to a rise of about 1.5 percent. Brent approached near three-month highs and was set for a gain of nearly 5.5 percent on the week. U.S. West Texas Intermediate crude futures were up about 1.7 percent, rising 91 cents to $55.32.
In US Equity Markets stocks gained on Friday, led by a bounce in shares of financials, as investors were optimistic about the ongoing trade talks to resolve a bruising tariff dispute between the United States and China. The S&P 500 was up 0.81 percent, at 2,767.92 and the Nasdaq Composite rose 0.29 percent, at 7,448.79. PepsiCo Inc shares rose 2.6 percent after the soda maker forecast an increase in revenue growth. Nvidia Corp rose 2.0 percent and helped push the technology sector 0.29 percent higher, after the chip-maker forecast sales for its current fiscal year above expectations.
In Bond Markets U.S. Treasury yields rose on Friday but held in the middle of their recent range as investors digested mixed economic data this week for signals of Federal Reserve interest rate policy. Benchmark 10-year notes fell 5/32 in price to yield 2.661 percent, up from 2.659 percent on Thursday. The yields have held between 2.543 percent and 2.799 percent this year, after falling from a seven-year high of 3.261 percent in October.