In European Equity Markets indices were hit on Friday, as investors reacted to political turmoil in Europe and overseas. The pan-European STOXX 600 closed 0.74 percent lower. Italy’s FTSE MIB index fell more than 3.7 percent after Rome agreed to set a higher than expected budget deficit target that could put it on a collision course with Brussels. Looking at sectors across the region, banks were worst performers on Friday, down around 2.6 percent. Lenders including Unicredit, Banco BPM and Intesa Sanpaolo all fell more than 7 percent.

In Currency Markets the US dollar climbed to a two-week peak versus a basket of currencies on Friday, boosted by gains against the euro amid concerns about the Italian budget and a U.S. interest rate outlook that reflects multiple rate hikes until 2020. The U.S. dollar also rose to a nine-month high against the yen. In mid-morning trading, the dollar index rose 0.4 percent to 95.302, rising for three straight sessions. The dollar rose to a nine-month peak versus the yen of 113.63 yen, and was last up 0.1 percent at 113.51 yen.

In Commodities Markets oil prices rose more than 1 percent on Friday, with Brent climbing to a fresh four-year high, as U.S. sanctions on Tehran squeezed Iranian crude exports, tightening supply even as other key exporters increased production. Brent crude futures rose $1.06 to $82.78 a barrel, a 1.3 percent gain. The contract hit a session high of $82.79, its highest since Nov. 10, 2014. In the third quarter, Brent has so far gained more than 4 percent. U.S. West Texas Intermediate crude futures were up $1.03 to $73.15 a barrel, a 1.4 percent gain.

In US Equity Markets stocks reversed losses to trade slightly higher on Friday morning, helped by gains in energy and healthcare companies. Intel shares jumped to trade nearly 3 percent higher after interim CEO Bob Swan said the company would be able to meet its full-year revenue outlook. The gains also lifted the S&P 500 tech sector, which was up 0.8 percent for the week. The S&P 500 climbed 0.2 percent as tech gained half a percent. The Nasdaq Composite gained 0.2 percent.

In Bond Markets U.S. Treasury yields fell on Friday as the bond sector was on track for its worst month since January as a result of rising government debt supply and sturdy economic data that have enabled the Federal Reserve to keep raising interest rates. Benchmark 10-year Treasury yields were 1 basis point lower at 3.046 percent. On Tuesday, they reached 3.113 percent, the highest since May. Their German counterpart was down 6 basis points at 0.469 percent.