In European Equity Markets the pan-European Stoxx 600 hovered around the flatline during afternoon trade and ended the session up 0.1% higher with sectors and major bourses pointing in opposite directions. Basic Resources were the strongest performers with a 1.1% climb, while bank stocks were 0.9% lower. Shares of Galapagos climbed 5.2% after KBC Securities raised its price target on the Amsterdam-listed stock. Wirecard shares jumped 5% in afternoon trade after it announced a deal to handle card payments for supermarket chain Aldi.

In Currency Markets the euro fell against a rebounding U.S. dollar on Friday and hit a 2-year low versus the Swiss franc, as investors increased bets for a European Central Bank interest rate cut as early as next week. Money markets are now pricing in a roughly 60% chance of a 10 basis point rate cut next week, versus a 40% chance earlier in the week. The euro was 0.4% lower at $1.1231. Against the Swiss franc it touched a two-year low of 1.1033 francs per euro, down 0.3% on the day.

In Commodities Markets oil prices rose on Friday as tensions spiked again in the Middle East after the United States said it had destroyed an Iranian drone in the Strait of Hormuz, a major chokepoint for global crude flows. Benchmark crude prices were still on track for their biggest weekly decline in seven weeks. Brent crude futures were up 37 cents, or 0.6%, at $62.30 a barrel, having risen as high as $63.32. Brent fell 2.7% on Thursday, its fourth straight session of losses, and was set for a weekly decline of around 6%.

In US Equity Markets indexes inched higher on Friday after solid results from technology giant Microsoft added to an upbeat mood following hints from a top Federal Reserve official that a U.S. interest rate cut could be imminent. Microsoft Corp, the most valuable U.S. company, rose 1.7% as strength in its cloud business helped it beat estimates at the end of a week of mixed earnings. The gains also lifted the technology sector, making it one of the six major S&P indexes trading higher. The S&P 500 rose 0.09%, at 2,997.93. The Nasdaq Composite added 0.14%, at 8,218.37.

In Bond Markets U.S. Treasury yields rose on Friday as investors evaluated comments from two influential Federal Reserve officials on Thursday, which increased expectations that the U.S. central bank may cut its benchmark interest rate by more than previously expected when it meets this month. John Williams, vice chairman of the Fed’s rate-setting committee and head of the regional Fed bank in New York, said when rates and inflation are low, policymakers cannot afford to keep their “powder dry” and wait for potential economic problems to materialize.