Euro zone government bonds fell on Friday as investors focused on upcoming European Central Bank rate hike plans after the U.S. Federal Reserve hinted interest rates there may have peaked, which pushed up shares and forced the dollar down.
The Nikkei jumped 2.54 percent to finish at its highest close since June 5 on Friday as exporters such as Toyota Motor gained on rising hopes that the U.S. interest rate-hike cycle may be nearing an end, easing concern of a slowdown in the world's largest economy.
Britain's FTSE 100 share index hit a 3-week high on Thursday, fired up by strong resources and bank stocks, although trading levels were modest ahead of a U.S. interest rate decision.
Banks saw HSBC and Royal Bank of Scotland gain 1.1 percent, while Barclays put on 1.5 percent.
The dollar edged higher across the board on Wednesday as investors awaited signals from the Federal Reserve on further interest rate hikes which may accompany a rise widely anticipated for later this week.
Financial markets stalled on Wednesday as uncertainty about when the Federal Reserve will end its monetary tightening campaign kept investors sidelined, while crude oil rose above $72 a barrel on worries about U.S. gasoline supplies.
The Nikkei fell 1.74 percent on Wednesday as tyre maker Bridgestone Corp. a day earlier cut its profit forecast citing higher raw material costs, pulling down its own shares and those of rivals and chemical makers.
Takeover action spurred UK stocks higher on Wednesday, with music group EMI surging after rejecting a bid from Warner Music and steelmaker Corus rising on talk of a possible offer from Russia's Severstal.
U.S. stock futures rose on Wednesday, suggesting a higher open on Wall Street before the start of the Federal Reserve's two-day policy meeting, with energy shares set to lead the way.
U.S. Treasury debt prices slipped on Friday, dropping for the eighth straight day on expectations the Federal Reserve will raise interest rates next week and perhaps again in August.
Stock markets rallied on Thursday on hopes that strong earnings will continue with mining companies among the top gainers on the back of a jump in commodity prices.
U.S. stock futures on Tuesday pointed to an uncertain start after two sessions of losses, with the housing sector in renewed focus ahead of housing starts data.
If bulls have their way next week, U.S. stocks could extend the rebound that has some on Wall Street hoping the worst is over after a month-long sell-off.
U.S. stocks slid on Friday after another warning from a Federal Reserve official about inflation, giving investors more reason to think the Fed will keep raising interest rates.
Asian markets rallied for a second day Friday, recovering from a plunge Tuesday that sent stocks in the region to their lowest levels in months.
The Canadian dollar fell hard against the the U.S. dollar on Friday after China's central bank decided to increase its reserve requirement, which triggered concerns about future demand for commodities.
A global sell-off in stocks that started in May is not over and may only be just starting, Abhijit Chakrabortti, global equity strategist at JPMorgan Chase & Co., said on Tuesday.
U.S. Treasuries were down slightly on Monday, ahead of a series of Federal Reserve speakers this session and before this week's inflation data, which could shed insight on the likelihood of a June rate hike.
Just as it seemed that Wall Street would be heading into a foruth day of steep declines on inflation fears and higher interest rates across the globe, investors rallied Thursday to end the day nearly flat.
U.S. stock market futures were drifting Wednesday on concerns the hangover from Federal Reserve's Chairman Ben Bernanke's hawkish interest-rate comments may linger, with seemingly little else on the economic or corporate news front to capture markets' attention.
U.S. stock futures pointed to a slightly higher market open on Wednesday, helped by upward momentum late in the previous session, but investors fretted about higher interest rates after a series of warnings about inflation from Federal Reserve officials this week.
U.S. investors will watch next week to see if the latest employment numbers temper inflation expectations, without sharply dimming the outlook for corporate profit growth, giving stocks a chance to bounce back from May's sharp sell-off.
Leading UK shares closed higher on Friday but finished the week with a moderate loss as the market's recent choppy trading pattern, sparked by inflation and interest rate jitters, persisted.
Britain's leading shares bounced into positive territory on Wednesday, reversing direction from initial losses as consolidation hopes in the utility sector boosted stocks such as International Power, while insurer Friends Provident, rose after an analyst upgrade and financials generally added support.
Almost everywhere investors turn, signs of inflationary pressures make it less likely the Federal Reserve will pause from two years of interest rate increases.
Stocks lost ground for a second straight session Friday when the dollar weakened and bonds prices fell after data showing higher import prices stoked the market's inflation worries.
British blue chips swung to a closing loss on Thursday and erased earlier gains, dragged lower by a drop in mobile phone giant Vodafone and losses on Wall Street.
The U.S. dollar may be losing its luster, but stock investors aren't losing much sleep over its weakness. In fact, analysts say, its recent slide would make mega-cap industrial stocks such as Caterpillar Inc. and Boeing Co. more appealing.
Mexico's benchmark 28-day T-bill yield edged lower to 7.02 percent on Tuesday as investors bet the central bank will leave interest rates steady.
Britain's FTSE 100 index closed sharply higher on Friday as fresh bid talk buoyed mortgage bank Alliance & Leicester, while the Midcap 250 index hit a fresh high led by brewer Greene King.
The Nikkei average fell 1.29 percent on Friday as shares of Sony Corp. tumbled after it forecast a sharp profit decline in the current year and as a stronger yen raised concern of a drop in earnings at exporters such as Kyocera Corp.
