Global equities edged higher on Friday as encouraging US economic data and a positive start to the earnings season helped ease tariff worries. US retail sales and jobless claims beat expectations, pushing the S&P 500 and Nasdaq to record highs on Thursday.
Asian shares outside Japan gained 0.9%, European stocks rose 0.4%, and US futures edged up 0.1%. “We remain constructive on the US macro outlook,” said Eren Osman of Arbuthnot Latham, noting growth may slow but not significantly, supporting market momentum.
Netflix’s better-than-expected earnings added to investor confidence. Market focus now turns to Alphabet and Tesla, which will report results next week.
In currency markets, the dollar was steady at 148.65 yen but down nearly 1% for the week. Japan’s ruling coalition faces a tough election, fueling uncertainty. Japan’s core inflation eased in June due to temporary utility cuts but stayed above 2%. Analysts said political shifts could drive USD/JPY beyond 149.7 if instability grows.
The US dollar index slipped 0.1% to 98.365 but was on track for a second weekly gain. Fed Governor Christopher Waller reiterated support for a potential rate cut, though many officials remain cautious.
Treasury yields dipped slightly, with 10-year yields at 4.44% and two-year yields at 3.90%. Oil prices rose as attacks on Iraqi Kurdistan oil fields stoked supply concerns, with US crude up 0.4% to $67.81 a barrel and Brent up 0.4% to $69.79. Spot gold rose 0.3% to $3,348 per ounce.
