London (AFP) – European and Asian stock markets closed out the week broadly higher on Friday following Wall Street’s latest record highs, sparked by healthy US retail data and upbeat earnings. The readings helped divert attention away from Donald Trump’s tariffs saga, with dozens of countries yet to cut deals with the US president two weeks before his August 1 deadline.
However, Japanese investors were a little more anxious after news that rice prices doubled in June, compounding problems for Prime Minister Shigeru Ishiba ahead of weekend elections in which the grain has been a hot topic. Tokyo’s Nikkei 225 closed down slightly, while Europe’s main indices gained around midday. “The positive tone to risk sentiment is continuing…after a week of record highs for global equities,” noted Kathleen Brooks, research director at XTB trading group.
London’s benchmark FTSE 100 index also reached an intraday record high earlier this week, topping 9,000 points on Tuesday. “Tariffs dominated market sentiment at the start of this week, but as the focus turns to President Trump’s health, tariff risks could recede,” Brooks added. The White House on Thursday said Trump had been diagnosed with a common, benign vein condition following speculation about his heavily bruised hand and swollen legs. The 79-year-old in January became the oldest person ever to assume the presidency.
The dollar dropped Friday as traders bet on the Federal Reserve cutting US interest rates. Trump this week denied he was planning to sack Fed boss Jerome Powell, who has been urged by the president to reduce US borrowing costs to further boost the world’s top economy. The Nasdaq and S&P scaled fresh peaks Thursday after figures showed US retail sales rose more than expected last month, reversing May’s decline. Another modest jobless claims report provided extra assurance.
That came on top of forecast-topping earnings from streaming behemoth Netflix, which further fanned buying in tech firms that followed Trump’s decision to allow chip giant Nvidia to export its H20 semiconductors to China. Hong Kong stocks were among the biggest winners Friday thanks to tech leaders. On the downside, shares in GlaxoSmithKline slid more than six percent after the British pharmaceutical giant reported a US regulatory setback for its blood cancer drug Blenrep.
– Key figures at around 1045 GMT –
London – FTSE 100: UP 0.1 percent at 8,977.21 points
Paris – CAC 40: UP 0.2 percent at 7,840.46
Frankfurt – DAX: FLAT at 24,376.67
Tokyo – Nikkei 225: DOWN 0.2 percent at 39,819.11 (close)
Hong Kong – Hang Seng Index: UP 1.3 percent at 24,825.66 (close)
Shanghai – Composite: UP 0.5 percent at 3,534.48 (close)
New York – Dow: UP 0.5 percent at 44,484.49 (close)
Euro/dollar: UP at $1.1643 from $1.1600 on Thursday
Pound/dollar: UP at $1.3445 from $1.3415
Dollar/yen: DOWN at 148.56 yen from 148.60 yen
Euro/pound: UP at 86.57 pence from 86.43 pence
Brent North Sea Crude: UP 0.8 percent at $70.05 per barrel
West Texas Intermediate: UP 0.9 percent at $66.79 per barrel
© 2024 AFP
