In European Equity Markets the pan-European Stoxx 600 ended the session 0.6% higher, with almost every sector in positive territory and China-exposed basic resources stocks jumping 2.5%. However, Friday’s rally marked the end of a volatile month for European stocks. Britain’s FTSE 100 index, which was up 0.3% at the closing bell, was down 5.3% in August in its worst monthly fall since August 2015. Deutsche Wohnen shares jumped 9.6% after a German newspaper reported that an incoming rent freeze in Berlin could be more lenient than previously planned.

In Currency Markets the U.S. dollar index was flat on Friday, with the offshore Chinese yuan headed towards its biggest monthly decline in 25 years as the two countries prepared for the implementation of new retaliatory tariffs on Sunday. Against the dollar, the offshore yuan was 0.2% weaker at 7.157, set for a 3.6% fall in August, it’s biggest monthly drop since 1994. Elsewhere, the pound stabilized despite the growing probability that Britain will exit the European Union on Oct. 31 without a deal.

In Commodities Markets oil futures fell on Friday, with U.S. crude down nearly 4% ahead of a hurricane near the Florida coast that could dampen demand, but prices were still headed for the biggest weekly increase since early July, boosted by an easing of U.S.-China trade rhetoric. Brent crude futures fell 79 cents, or 1.3%, to $60.29 a barrel. U.S. West Texas Intermediate (WTI) crude futures fell $2.09, or 3.7%, to $54.62 a barrel. In August alone, Brent was set for a monthly drop of 7.4%, and WTI was on track to lose 6.3%.

In US Equity Markets stocks rose on Friday as an easing of trade tensions between the United States and China, and data showing solid domestic consumer spending abated concerns that major economies were on the brink of a recession. The S&P 500 was up 0.43%, at 2,937.01 and the Nasdaq Composite rose 0.34%, at 8,000.72. Ulta Beauty Inc. fell 27.5% to the bottom of the S&P 500 after the cosmetics company cut its full-year profit forecast. The biggest gainer on the benchmark index was Campbell Soup Co, which rose 6.2% after its quarterly profit beat estimates.

In Bond Markets Italian bond yields rose on Friday but were heading for one of their biggest monthly declines in more than six years, reflecting a fall in the political risk premium on the country’s debt amid growing expectations of European Central Bank stimulus. The  Italian 10-year yield has dropped some 51 basis points in August for a third consecutive month of falls. Italian yields did rise on Friday, however. The 10-year yield was up 5 bps at 1.036%. Safe-haven Germany’s 10-year yield fell 2 basis points to -0.70%, close to record lows.