Global stock markets diverged Friday in an end to a week's trading dominated by earnings updates and angst over rising bond yields amid US election uncertainty. Wall Street stocks finished the day mixed, with the Nasdaq pressing higher and the Dow pulling back. Besides the neck-and-neck US election, investors are looking ahead to major economic data next week and earnings from tech giants.
"There's more uncertainty out there than anything else," said LBBW's Karl Haeling. But a rise on US bond yields -- at least partially due to speculation that a return to the White House by Donald Trump would lead to tax cuts that fuel inflation -- have acted as a headwind. Next week will see five of the "Magnificent Seven" tech stocks reporting earnings, including Alphabet (Google), Amazon, Apple, Meta (Facebook) and Microsoft.
Key US monthly jobs numbers come out on Friday. "This could prove a big test for the markets, while also being a driver of sentiment as we head towards year-end," said Trade Nation analyst David Morrison. In Europe, London ended the day down 0.
3 percent as investors awaited the first budget of Britain's new Labour government on Wednesday, expected to include tax rises on businesses. Meanwhile, shares in British bank NatWest jumped nearly five percent before paring gains as investors welcomed the lender's strong increase in profits, with income higher thanks to interest rates remaining elevated. Frankfurt edged higher after data showed Germany's business confidence re.