In European Equity Markets the pan-European Stoxx 600 was in positive territory at the closing bell, chemicals stocks leading the gains with a 1.2% climb while autos recovered from an early fall to trade 0.8% higher. Health care was the worst performing sector, shedding 1.3%. Norwegian financials company Storebrand fell 4% to the bottom of the Stoxx 600 after tepid second-quarter results, while insurance compatriot Gjensidige Forsikring climbed 4.6% after outperforming pretax profit expectations.

In Currency Markets the U.S. dollar fell for a third consecutive day on Friday as stronger-than-expected U.S. inflation data failed to shake convictions that the Federal Reserve will start cutting interest rates at a policy meeting later this month. Against a basket of other currencies, the dollar fell 0.1% to 96.94 and was on track for its biggest weekly drop in three weeks. Other currencies which benefited from a weaker dollar were in markets whose central banks signalled a relatively confident outlook to interest rates.

In Commodities Markets oil prices edged higher on Friday and were on track for a weekly gain as U.S. oil producers in the Gulf of Mexico cut more than half their output because of a tropical storm and as tensions continued to simmer in the Middle East. OPEC also predicted on Thursday the return of a surplus next year despite an OPEC-led pact to restrain supplies. Brent crude futures were up 36 cents at $66.88 a barrel after hitting a session high of $67.29. U.S. West Texas Intermediate (WTI) crude futures were up 6 cents at $60.26 after touching a high of $60.74.

In US Equity Markets the S&P 500 and the Dow hit record highs on Friday, as the indexes continued a strong run for the week on raised expectations of an interest rate cut this month. The S&P 500 was 0.17%, at 3,005.15. The Nasdaq Composite added 0.27%, at 8,217.86. The healthcare sector fell 1%, the most among the 11 major S&P sectors, weighed down by a 15% decline in Illumina Inc. The gene sequencing company’s preliminary second-quarter revenue came in below analysts’ estimate.

In Bond Markets Treasury yields rose modestly on Friday, largely unmoved by stronger-than-expected producer price data as market expectations of an interest rate cut in July held firm. The two-year Treasury note yield, which reflects market sentiment about changes in interest rate policy, was up less than half a basis point to 1.85%. Gains were slightly larger at the long end of the yield curve, with the benchmark 10-year note up 1.1 basis points to 2.13%, and the 30-year bond yield up 1.8 basis points to 2.65%.