In European Equity Markets the pan-European Stoxx 600 closed 0.7% higher. Autos and basic resources, two sectors particularly sensitive to trade-related news, rose almost 0.8% and 1.5%. Euro zone inflation was stable at 1.2% in June. French retailer Casino Guichard-Perrachon, which saw its shares declined 4% to the bottom of the Stoxx 600 following news of a shareholding restructuring for its Latin American operations. Merlin Entertainments rose 14% after agreed to be acquired by the investment vehicle of Lego’s founding family and private equity firm Blackstone Group LP.

In Currency Markets sterling recovered on Friday from the five-month lows it reached earlier in the day against the dollar and euro, although worries about a no-deal Brexit capped the currency’s gains. Sterling was up 0.4% at $1.2712, bringing its gains in June to more than 3%. After touching five-month lows, it returned to positive territory as the dollar index eased 0.15%. Investors are reluctant to take big positions in the pound amid the Conservative party leadership contest, which should end with a new prime minister in place by the end of July.

In Commodities Markets Brent crude oil held near $67 a barrel on Friday ahead of talks over the trade dispute between the U.S. and Chinese presidents this weekend and on production cuts from OPEC on Monday. Brent crude futures were up 5 cents at $66.60 a barrel. U.S. WTI crude futures were down 22 cents at $59.21 a barrel. Brent was on course for a gain of around 25 percent in the first half of 2019 and WTI for a 30 percent gain. The leaders of the G20 countries meet on Friday and Saturday in Osaka, Japan.

In US Equity Markets stocks rose on Friday, as big banks gained after clearing the Federal Reserve’s stress test, while investors kept a watch on the G20 summit where a meeting between Presidents Donald Trump and Xi Jinping could lay the groundwork to resolve their trade dispute. The S&P 500 rose 0.23%, at 2,931.58. The Nasdaq Composite added 0.16%, at 7,980.12. Constellation Brands Inc jumped 4%, the most on the S&P, after the Corona beer maker reported quarterly results above analysts’ estimates.

In Bond Markets Euro zone government bond yields on Friday fell towards record lows in many cases on tepid inflation data for the bloc and ahead of a G20 meeting this weekend at which the potential easing of a trade conflict will be in focus. Germany’s 10-year government bond yield fell 1.5 basis points to -0.33%, within a whisker of a record low of 0.336% hit earlier this week. Italian debt, seen as one of the biggest beneficiaries of ECB largesse, outperformed, with 10-year yields falling 6 bps to 2.07%, its lowest in a week.