In European Equity Markets stocks closed higher Friday after Italian parties averted the prospect of a snap election and Spain’s leader was ousted and replaced. The pan-European Stoxx 600 closed up almost 1 percent, with most sectors and major bourses in positive territory. Spain’s IBEX 35 jumped 1.76 percent after Spanish Prime Minister Mariano Rajoy was ousted as leader of the country Friday.  Europe’s banking index led the gains, up 2 percent as Italian banks surged higher on the news that a coalition government was on course to be sworn in Friday. Banco BPM and BPER Banca were the top sectoral performers.

In Currency Markets the U.S. dollar inched up on Friday following the release of expectation-beating employment data which stoked inflation fears and prompted traders to raise bets the Federal Reserve will hike interest rates a fourth time this year. Against a basket of six currencies, the dollar rose half a percent to a session high of 94.45. The euro edged higher on Friday and looked set to break a six-week losing streak. On Friday, the single currency edged 0.2 percent higher to a session high of $1.1717. On a weekly basis, it is set to climb 0.5 percent, breaking six-week losing streak.

In Commodities Markets gold prices were lower on Friday, as the U.S. dollar strengthened after a better than expected jobs report. Comex gold futures for June delivery were down 0.48 percent to $1,293.90 a troy ounce. Oil prices traded lower on Friday as investors looked ahead to the latest publication of U.S. drilling activity. Crude has been under pressure recently as traders fret over the uncertainty of continued production curbs under the auspices of the Organization of Petroleum Exporting Countries (OPEC) and Russia. New York-traded West Texas Intermediate crude futures fell 55 cents, or about 0.8 percent, to $67.49 a barrel .

In US Equity Markets stocks rose on Friday led by bank stocks as a stronger-than-expected jobs report for May locked in expectations of an interest rate hike by the Federal Reserve this month. The S&P financial index rose 1.4 percent, with shares of big U.S. banks gaining between 1.5 percent and 1.7 percent. The S&P 500 was up 0.81 percent, at 2,727.23 and the Nasdaq Composite was up 0.84 percent, at 7,504.54. Nine of the 11 major S&P indexes were higher. Among other stocks, warehouse club operator Costco fell 1.2 percent in premarket trading as higher freight costs dented its quarterly gross margins.

In Bond Markets U.S. Treasury yields rose on Friday, with benchmark 10-year notes on track for their largest one-day yield increase in two weeks, after data showed the world’s largest economy created more jobs than expected in May, cementing expectations of at least two more rate hikes by the Federal Reserve. U.S. 10-year yields, which move inversely with prices, climbed 8 basis points, the largest daily rise since mid-May. U.S. 30-year yields also had a significant gain, up nearly 8 basis points on the day, the most in two weeks as well. U.S. two-year yields, meanwhile were likewise up at 2.479 percent, from 2.411 percent on Thursday.