In European Equity Markets indices closed slightly higher on Friday afternoon as investors reacted to earnings and waited for a report from the Federal Reserve. The pan-European Stoxx 600 closed 0.23 percent to the upside with major bourses and sectors moving in different directions. Retail was the biggest loser Friday afternoon, with Zara-owner Inditex struggling at the bottom of the sector. It fell further in afternoon trade, closing 7 percent lower following reports Thursday that it is to run-down its Irish-based web unit. The automotive sector was also in the red, falling in afternoon trade to close 0.74 percent lower. Valeo closed over 11 percent down after reporting its 2017 full-year numbers, leaving it founder at the bottom of the European benchmark.

In Currency Markets the US dollar edged higher against a basket of major currencies on Friday, extending its recovery from a three-year low last week, as the potential for a more aggressive U.S. Federal Reserve prompted investors to pare bearish bets against the greenback. The dollar index was up 0.19 percent at 89.904. The index hit a three-year low of 88.253 on Feb 16. The euro edged lower against the dollar, pressured by the greenback’s stronger tone and by investor caution ahead of the outcome of the Italian general election on March 4. A German Social Democrats’ poll of its members on joining another coalition government with Chancellor Angela Merkel’s conservatives is also due that day, two big political risk events for markets.

In Commodities Markets oil edged further above $66 a barrel on Friday supported by a dip in Libyan production and upbeat comments from Saudi Arabia that an OPEC-led effort to erode stockpiles through output curbs is working. Crude rebounded from an early loss after the shutdown of the El Feel oilfield in Libya, which produces 70,000 bpd. Production in the OPEC member has been running at about 1 million bpd, although it remains volatile due to unrest. Brent crude, the global benchmark, was up 10 cents at $66.49. U.S. crude was up 8 cents to $62.85. In the latest OPEC comment that a supply cut deal led by the Organization of the Petroleum Exporting Countries is working, Saudi Arabia’s Energy Minister Khalid al-Falih said he expected inventories to keep declining this year.

In US Equity Markets main indexes rose on Friday, with gains in technology stocks helping claw back some of the week’s losses, which were sparked by concerns about interest rates. The S&P 500 rose 0.68 percent to 2,722.38. Despite Friday’s gains, the indexes were on track to post small losses for the week. The Nasdaq Composite added 0.68 percent to 7,259.27 and was set for its second week of gains. Hewlett Packard Enterprise and HP Inc, the two companies created from the split of Hewlett Packard Co in 2015, were among the biggest gainers in the tech sector following their strong results. Blue Buffalo Pet Products jumped 17 percent after General Mills said it would buy the natural pet food maker for $8 billion in cash. General Mills was the biggest loser on S&P 500, falling about 3.4 percent.

In Bond Markets Italy’s 10-year government bond yield was poised on Friday for its biggest weekly rise of the year, reflecting some unease at the approach of a national election that is expected to result in a hung parliament. Italian bond markets have so proved resilient in the run-up to the March 4 election thanks to a stronger euro zone economy, a ratings upgrade, the fading risk of a euro-zone break-up and a toning down of anti-euro rhetoric from populist parties. Italy’s 10-year bond yield was unchanged and lagging better rated peers at 2.07 percent. It has risen about 8 bps this week, set for its biggest weekly rise since December. That has left the gap between Italian bond yields and those of benchmark euro zone issuer Germany at around 141 bps, its widest since January.