In European Equity Markets indices closed lower Friday afternoon as investors paused for breath after a rally in the previous session fueled by the European Central Bank (ECB). The pan-European Euro Stoxx 600 closed down by 0.8 percent, with all major bourses and most sectors in negative territory. The FTSE 100 in London closed lower by 1.7 percent. Basic Resources stocks fell the furthest, finishing the Friday session over 3 percent lower. Meanwhile, the Banking, and Oil and Gas sectors were both over 1.8 percent lower.

In Currency Markets the U.S. dollar slipped against the Japanese yen on Friday, as President Donald Trump announced hefty tariffs on $50 billion of Chinese imports and Beijing threatened to respond in kind, raising tensions between the world’s two largest economies. The dollar slipped 0.07 percent to 110.54 yen, retreating from a three-week high of 110.9 yen. The Canadian dollar weakened to a fresh near one-year low against its U.S. counterpart as trade tensions between U.S. and China intensified and domestic data showed a surprise decline in manufacturing sales.

In Commodities Markets oil prices fell sharply Friday, with benchmark Brent crude falling more than $2 a barrel ahead of an OPEC meeting in Vienna next week as two of the world’s biggest producers, Saudi Arabia and Russia, indicated they were prepared to increase output. Many analysts expect a rise in output to be agreed. Brent crude oil fell $2.15 a barrel to $73.79. U.S. light crude was $1.77 lower at $65.12 a barrel. Brent crude is on track to end the week down more than 3 percent, while U.S. crude is heading to fall 0.7 percent.

In US Equity Markets stocks fell on Friday after the United States announced tariffs on $50 billion worth of Chinese goods, spurring a promise of immediate and equivalent retaliation from Beijing. The S&P 500 was down 0.36 percent, at 2,772.43 and the Nasdaq Composite declined 0.49 percent, at 7,722.95. Adobe shares fell 3.2 percent, the biggest percentage decliner on the S&P 500, after the company projected third-quarter revenue that fell slightly below estimates. Boeing, the single largest U.S. exporter to China, fell 1.7 percent, dragging the Dow lower for the fourth day in a row.

In Bond Markets Italian government bonds were on Friday headed for their best week since September 2012, boosted by a benign European Central Bank announcement on interest rates and this week’s positive comments on the euro from Italy’s anti-establishment government. The euro zone’s third-largest economy saw its 10-year yields declined 15 basis points on Friday to 2.60 percent and on track for its biggest weekly decline since September 2012, down nearly 52 bps on the week. Germany’s 10-year government bond yield, the benchmark for the bloc, was 4 bps lower at 0.39 percent.