World equities ended the week on a cautious note, with investors weighing the latest central bank policy decisions, trade developments, and tariff concerns. Profit-taking in Europe and mixed sentiment in Asia contrasted with early optimism on Wall Street, while activity in the Middle East and Africa remained subdued due to weekend closures.
ASIA/PACIFIC
Asian stocks ended mixed. China’s Shanghai Composite Index slipped 0.3%, while Hong Kong’s Hang Seng swung between gains and losses before finishing little changed at 26,545.10. Japan’s Nikkei 225 declined 0.6% after the Bank of Japan kept its policy rate steady at 0.5%, in line with forecasts from a Reuters poll of economists. South Korea’s Kospi lost 0.46%, whereas Australia’s S&P/ASX 200 advanced 0.3%, supported by strength in technology stocks.
EUROPE
European markets closed slightly down as investors assessed recent central bank moves and the potential impact of tariffs. A bout of profit-taking also contributed to the weak close. The pan-European Stoxx 600 slipped 0.16%. The U.K.’s FTSE 100 eased 0.12% after hopes of tariff relief in steel and aluminum faded when no breakthrough emerged from Prime Minister Keir Starmer’s meeting with U.S. President Donald Trump on Thursday. Germany’s DAX fell 0.15%, while France’s CAC 40 edged 0.01% lower. Bucking the trend, Switzerland’s SMI gained 0.5%. Elsewhere, Austria, Denmark, Finland, Iceland, Ireland, Netherlands, Norway, Poland, Portugal, and Russia closed weaker, while Belgium, Czech Republic, Greece, Spain, and Sweden managed gains.
AMERICAS
U.S. stocks extended their rally on Friday, with all three major indexes closing at record highs. The Nasdaq rose 0.7%, the S&P 500 added 0.5% and the Dow gained 0.4%. Sentiment was buoyed by the Federal Reserve’s quarter-point rate cut midweek, alongside signals of two additional cuts later this year. Gains were reinforced by President Donald Trump’s upbeat remarks following a call with China’s Xi Jinping, which he called “very productive.” The discussion touched on trade, fentanyl, the war in Ukraine, and a deal regarding TikTok’s U.S. operations — fueling hopes of progress on key geopolitical and economic issues.
AFRICA & MIDDLE EAST
Note: Trading activity across Africa and the Middle East is typically muted on Fridays, as the majority of regional stock exchanges remain closed. As a result, market movements from these regions are generally limited at the end of the week.