Global stock markets ended Friday on a mixed note, with cautious sentiment prevailing across major exchanges as investors digested earnings, labour data, and shifting central bank signals. While the US saw modest gains buoyed by tech stocks, European indices edged lower amid political uncertainty and weak consumer sentiment. Asian markets reflected a similar divergence, with Chinese equities struggling despite stimulus hopes, and Japan posting gains fuelled by a weaker yen.
Wall Street edges higher on tech resilience
In New York, the S&P 500 closed up 0.3%, with the Nasdaq advancing 0.6%, supported by strong performances from Apple and semiconductor firms. The Dow Jones Industrial Average, however, slipped 0.1% as bank stocks pulled back following a dip in US Treasury yields. Investors remained watchful after US jobs data showed a slight cooling in the labour market, reinforcing bets that the Federal Reserve may begin easing rates by year-end.
Europe retreats as politics and data weigh
European shares ended the week in negative territory. The STOXX 600 dropped 0.4%, with the DAX in Frankfurt falling 0.5% and the CAC 40 in Paris down 0.6%. Markets were unsettled by rising political tensions in France ahead of policy reforms and softer-than-expected German retail figures. The FTSE 100 in London lost 0.3%, dragged by mining and financial stocks, despite a slightly stronger pound.
Asia-Pacific markets show divergence
In Asia, Japan’s Nikkei 225 gained 0.9%, closing near multi-decade highs as the yen weakened further, boosting exporter sentiment. In contrast, the Shanghai Composite slipped 0.2%, with investors disappointed by the lack of new fiscal measures from Beijing. Hong Kong’s Hang Seng Index also fell 0.4%, pressured by property sector concerns and weak earnings guidance from major firms.
Oil and currency markets remain steady
Brent crude prices closed marginally higher at $84.70 a barrel, supported by rising summer demand and ongoing geopolitical tensions in the Middle East. The US dollar ended the day broadly flat, while gold steadied near $1,950 per ounce as investors sought safety amid global uncertainty. Bond yields remained subdued, reflecting cautious optimism that inflation is easing in key markets.
Outlook remains uncertain amid summer slowdown
Market participants now turn their attention to upcoming inflation figures from the US and China next week, which could provide clearer guidance on the path of interest rates. With trading volumes expected to decline during August, volatility may increase, especially as political and geopolitical risks remain elevated in several regions. For now, investors appear content to tread water while awaiting stronger signals on growth, policy, and global stability.
REFH – Newshub, 2 August 2025
Recent Comments