Global stocks traded flat on Friday but stayed close to record highs as U.S. President Donald Trump and Russian President Vladimir Putin held high-stakes talks in Alaska over the Ukraine conflict. Bond markets adjusted as traders eyed a possible Federal Reserve rate cut.
Wall Street performance
The Dow Jones Industrial Average rose 0.08%, hitting an intra-day record high, while the S&P 500 fell 0.29% and the Nasdaq lost 0.40%. Losses in technology, financials, industrials, and utilities weighed on the broader market. Analysts highlighted earnings growth and profit margins as key drivers of the rally.
U.S. retail sales rose 0.5% in July, a solid gain after Thursday’s surprise jump in producer prices raised fresh inflation concerns. Investors remain cautious about the Fed’s next move on interest rates.
European and global markets
European shares touched a five-month high before retreating. The STOXX 600 closed nearly flat at 0.06% as earnings results supported sentiment. The MSCI All Country World Index also held steady at 951.70, just shy of Wednesday’s record of 954.21.
Investors are closely monitoring the Trump-Putin meeting, which could set the stage for a potential ceasefire in Ukraine. Ukrainian bonds have stalled at around 55 cents on the dollar, reflecting persistent uncertainty. Analysts warned that any long-term deal will require the involvement of Ukraine and European leaders.
Bonds, currencies and commodities
U.S. Treasury yields inched higher. The two-year note yield rose to 3.751%, while the 10-year yield increased to 4.32%. In currencies, the dollar weakened 0.38% against the yen, 0.15% versus the Swiss franc, and fell 0.34% against a basket of major peers. The euro gained 0.48% to $1.1702.
Japanese GDP expanded by an annualized 1.0% in Q2, surpassing forecasts. Brent crude slipped 1.5% to $66.85 per barrel, while U.S. crude dropped 1.8% to $62.80. Spot gold inched up 0.09% to $3,338.65 an ounce and U.S. gold futures settled flat at $3,382.60.
