Major European stock markets opened slightly lower on Friday. This decline followed profit-taking by investors after a bullish period on Thursday and a reassessment of a new round of monetary tightening by global central banks. The pan-European STOXX 600 fell about 0.2 percent in early trading. Meanwhile, Germany's DAX decreased by 0.42 percent, EURO STOXX 50 fell by 0.19 percent, CAC 40 dropped by 0.34 percent, and FTSE 100 declined by 0.18 percent.
Economic Data and Its Impact on the Market
Investors are also paying attention to the latest economic data. Retail sales in the UK increased by 0.5 percent in August and grew by 2.4 percent compared to last year, which was higher than expected. In Germany, producer prices also faced a 4.6 percent increase compared to last year, which was also beyond forecasts.
Read more: The Portuguese government is reducing income tax and granting bonuses to retirees
Bond Market Volatility and Gold Prices
The bond market stabilized after a period of heavy selling. The yield on 10-year U.S. Treasury bonds fell to about 4.94 percent, while Japan's equivalent reached approximately 2.97 percent. In the Eurozone, yields remained high, with Germany's 10-year yield at about 3.49 percent, France at 4.47 percent, and Italy at 4.36 percent.
The decline in U.S. and Japanese bond yields helped support precious metals. Gold prices rose about 1.2 percent in the European morning to nearly $4,395 per troy ounce, while silver increased by nearly 2.8 percent to about $67 per ounce.
In Asia, Japan's Nikkei 225 rose 1.9 percent to 65,332.57 after the Bank of Japan raised its key interest rate from 1.0 percent to 1.25 percent, the highest level in 31 years. This move was widely anticipated and followed the Federal Reserve's interest rate hike earlier this week.
Pressure from the United States on Japan to raise rates has arisen due to concerns about the weakening yen. The two countries recently intervened jointly to strengthen the yen, but these efforts have not had a significant impact.
In currency trading, the euro was nearly stable against the dollar, trading around $1.148, while the pound rose about 0.1 percent to around $1.337. The U.S. dollar also increased to 157.55 Japanese yen, up from 155.95 yen.
In other markets, South Korea's KOSPI rose 2.3 percent to 6,866.83. Australia's S&P/ASX 200 saw little change, decreasing less than 0.1 percent to 8,731.50. Hong Kong's Hang Seng Index rose nearly 0.7 percent to 24,769.80, while the Shanghai Composite Index increased by 1.0 percent to 3,916.08.
The decline in oil prices and reduced pressure from the bond market also helped Wall Street recover many of its losses from the previous day. The S&P 500 recorded a 1.1 percent increase, marking only its second rise in the last nine days. The Dow Jones Industrial Average rose by 316 points, or 0.6 percent, and the Nasdaq Composite Index grew by 1.7 percent. Stocks improved after Brent crude prices fell from nearly $110 earlier in the week due to concerns about a potential war with Iran that could disrupt oil supplies in the Middle East.
Read more: Kazakhstan as a regional trade hub: An opportunity for Europe · Christine Lagarde, President of the European Central Bank, rejected the proposal for debt forgiveness for Melanchon
