Global stocks on Friday mostly held onto gains made earlier this week on expectations of a cut to US interest rates.
Wall Street opened mixed after reaching fresh record highs the previous day as US inflation and jobless claims data cemented expectations that the Federal Reserve will trim borrowing costs at its meeting next week.
鈥楽tock markets (are) at record highs on hopes for falling interest rates,鈥� noted Derren Nathan, head of equity research at stockbroker Hargreaves Lansdown.
Markets expect the Fed to cut interest rates by a quarter point next week, and make another two cuts of the same size at its two remaining meetings this year.
Briefing.com analyst Patrick O鈥橦are said a lack of buying conviction on Wall Street wasn鈥檛 notable, but rather the lack of selling conviction despite reaching new all-time highs which could spark concerns about valuations.
鈥楾he market is effectively riding the trend until the price action tells it to jump off that ride,鈥� said O鈥橦are. 鈥楾hat message hasn鈥檛 been delivered yet.鈥�
European stock markets were steady in afternoon trading, while Asia鈥檚 main indices made gains.
There were fresh records this week also for the Tokyo and Seoul stock markets, while London on Friday neared a new all-time high.
London鈥檚 benchmark FTSE 100 rose thanks to a drop in the British pound following data showing the UK economy stalled in July.
鈥榃hile the data underscores the fragile state of the UK economy, sterling weakness and continued strength in energy and financial names are helping the index outperform broader European peers,鈥� said Joshua Mahony, chief market analyst at traders Scope Markets.
Hong Kong led the way among Asia鈥檚 top stock markets on Friday, closing up more than one per cent thanks to a surge of more than five per cent in the share price of Alibaba.
The e-commerce titan鈥檚 New York stock had spiked eight per cent Thursday, helped by its latest moves in the artificial intelligence sector.
This week saw also more record highs for the price of gold, viewed as a safe haven investment, following escalating tensions over the Israel-Gaza and Russia-Ukraine conflicts.
Russia鈥檚 central bank on Friday trimmed its key interest rate to 17 per cent as the country risks an economic slowdown.
The Bank of England is next week widely expected to keep its key rate on hold as elevated UK inflation offsets stagnant growth.
The European Central Bank on Thursday held interest rates steady with eurozone inflation under control and trade tensions having eased, even as France鈥檚 political crisis presents policymakers with a fresh challenge.
