In European Equity Markets the pan-European Stoxx 600 closed 0.6% lower, with most sectors in negative territory. Autos stocks suffered sharp losses by the close, falling 2%. Danish hospital equipment maker Ambu gained 7% to top the Stoxx 600, while Simcorp shares were also up 5% after the Danish IT company posted strong second-quarter results and upgraded its earnings forecast. At the bottom of the European blue chip index, Rockwool International’s stock fell nearly 16% after its second-quarter results.
In Currency Markets the U.S. dollar fell from three-week highs against the euro and one-week peaks versus the yen on Friday after Federal Reserve Chair Jerome Powell set the stage for further interest rate cuts, leaning away from earlier comments by other Fed officials who said further easing was not necessary for now. The dollar turned lower against the yen, trading down 0.2% at 106.23 yen, after hitting a one-week high of 106.73 earlier in the session. The euro edged higher to $1.1086, after earlier touching a three-week low of $1.1052.
In Commodities Markets oil prices fell sharply on Friday after China unveiled retaliatory tariffs against about $75 billion worth of U.S. goods, marking the latest escalation of a protracted trade dispute between the world’s two largest economies. Brent crude futures, the international benchmark for oil prices, fell 88 cents to $59.04 a barrel. U.S. West Texas Intermediate (WTI) crude futures fell by $1.33 to $54.02. Iran’s foreign minister said talks held on Friday with French President Emmanuel Macron about a landmark 2015 nuclear deal were “productive”.
In US Equity Markets main indexes lost about 1% on Friday after President Donald Trump said U.S. companies should “immediately start looking for an alternative to China” after Beijing officials earlier retaliated by imposing tariffs on U.S. goods. The S&P 500 was down 1.17%, at 2,888.71. The Nasdaq Composite fell 1.20%, at 7,895.70. Foot Locker Inc fell 12.4% after the footwear retailer missed estimates on second-quarter revenue and profit. The disappointing earnings also pulled shares of Nike Inc , its major supplier, down 0.8%.
In Bond Markets most euro zone bond yields rose on Friday to their highest in more than a week as investors scaled back expectations for aggressive U.S. rate cuts before a speech by Federal Reserve Chairman Jerome Powell later in the day. Across the euro area, 10-year bond yields were 2 to 3 basis points higher on the day. Germany’s 10-year bond yield rose to -0.603%, its highest in just over a week and a half; U.S. 10-year Treasury yields rose 5 bps to 1.66% and Britain’s 10-year gilt yield rose to a three-week high around 0.57%.