In European Equity Markets the pan-European Stoxx 600 fell 0.7 percent, with almost all sectors slipping into negative territory. The only sector to hold onto gains was travel and leisure. Major bourses fell with France’s CAC 40 down over 1 percent. Auto stocks were the worst performers during afternoon deals, with the sector off 1.4 percent after President Donald Trump reportedly said the European Union’s proposal to eliminate auto tariffs was “not good enough.” Michelin, Schaeffler and Pirelli all fell 2 percent or more on the news.

In Currency Markets the euro fell on Friday on anxiety about an escalating trade conflict between the U.S. and the European Union. Emerging market currencies had less luck, with currencies relying on foreign capital to finance their current account deficit hit the hardest. The Argentinian peso, the world’s worst-performing currency this year due to the country’s poor economic health, fell 10 percent on Thursday, bringing its month-to-date losses to 27 percent. That knocked the Brazilian real to near its September 2015 record low.

In Commodities Markets oil prices slipped on Friday as concerns over the impact of a global trade war depressed sentiment, although impending U.S. sanctions on Iran and falling Venezuelan output limited losses. Benchmark Brent crude oil was down 40 cents at $77.37 a barrel. U.S. light crude was 30 cents lower at $69.95. U.S. President Donald Trump threatened on Thursday to withdraw from the World Trade Organization, his latest salvo in a deepening dispute between the United States and its major trading partners.

In US Equity Markets the S&P 500 and the Dow were largely flat on Friday hit by concerns about ongoing trade talks between the United States and other major economies, but gains in Apple and Amazon lifted the Nasdaq. The S&P 500 gained 0.11 percent, at 2,904.18 and the Nasdaq Composite rose 0.33 percent, at 8,114.87. Apple rose 1.6 percent, extending its gains for the seventh day. Warren Buffett said Berkshire Hathaway had added to its stake in the iPhone maker and Apple announced a Sept. 12 event, at which it is expected to unveil new iPhone models.

In Bond Markets Italy’s short-dated bond yields hit their highest levels in almost three months on Friday, as remarks from an official that an EU budget ceiling could be exceeded if needed fueled bearish sentiment towards debt markets. Italy’s government bond yields hit three-month highs across the curve with the two-year bond yield rising to 1.46 percent before easing slightly to stand 11 basis points higher on the day. Five-year yields climbed to 2.57 percent and 10-year yields reached 3.25 percent, having reversed early falls. The 10-year yield was set to end August up more than 50 bps.