In European Equity Markets the pan-European Stoxx 600 finished down 0.8% having earlier hit its lowest point since February 19. Autos led the losses with a 2% decline as all but two sectors traded in the red. Utilities stocks were the best performer, up 0.22% during Friday trade.  German payments company Wirecard traded 8.4% lower after a German newspaper Handelsblatt reported that the firm was among companies to have processed payments for a network of fraudulent trading websites.

In Currency Markets the euro rose against sterling for a second straight day on Friday as the battle to succeed Prime Minister Theresa May sapped appetite for the British pound, putting it on course for its worst monthly loss against the single currency in two years. On Friday, the pound was trading less than 2% from that level at 88.40 pence. It was on track for a monthly decline of nearly 3% against the euro, its biggest loss since May 2017. Against the dollar, the pound was steady at $1.2611.

In Commodities Markets oil fell on Friday, on track for its biggest monthly drop in six months, after U.S. President Donald Trump stoked global trade tensions by threatening tariffs on Mexico, one of the largest U.S. trade partners and major supplier of crude oil. Brent crude futures fell $2.28 to $64.59 a barrel, a 3.3% loss. U.S. West Texas Intermediate (WTI) crude futures fell $1.68 to $54.91 a barrel, a 3% loss. Brent futures were on track for an 11% slide in May and WTI for a 14% decline, which would be their biggest monthly losses since November.

In US Equity Markets indices  fell on Friday, hit by fears that President Donald Trump’s shock threat of tariffs on Mexico could prove the trigger that pushes the United States into recession. The S&P 500 was down 0.94%, at 2,762.60 and the Nasdaq Composite fell 0.97%, at 7,494.02. Among the 11 major sectors, only the defensive real estate index was up 0.6%. U.S. carmakers and manufacturers were among the worst hit. General Motors Co fell 4.2% and Ford Motor Co 2.9%, pushing the consumer discretionary sector 1.17% lower.

In Bond Markets U.S. Treasury yields tumbled to 20-month lows on Friday after U.S. President Donald Trump said the United States will impose a tariff on Mexican goods, sparking broad risk aversion. Benchmark 10-year yields fell as low as 2.147 percent, the lowest since September 2017, before rising back to 2.173 percent. The inversion between three-month bills and 10-year notes expanded as far as 24 basis points, a signal that a recession is likely to follow in one to two years.