Australia

Australian shares were hesitant Saturday morning following a mixed session across global markets. While US indices ended the week with gains, mainly due to hopes of cooling inflation, investors were skeptical about the outlook for the financial sector.

ASX futures were little changed as of 11:00am on Saturday, suggesting an uncertain open.

The S&P 500 hovered near its highest close since April 2022 on Friday after signs of cooling inflation this week boosted stocks market-wide.

The broad US stock index edged lower for the day after earnings reports from big banks suggested resilience in the economy, but executives cautioned that a recession was still possible.

The Dow Jones Industrial Average and the tech-heavy Nasdaq Composite recorded their best weeks since March, rising 2.3% and 3.3%, respectively. The S&P 500 gained 2.4% in a broad-based advance, with all 11 sectors moving higher for the week.

The S&P 500 fell 0.1% for the day, while the Dow added 0.3%, or about 114 points. The Nasdaq Composite edged down 0.2%. Canadian stocks declined slightly, with the S&P/TSX Composite losing 0.1%.

In commodity markets, Brent crude oil slipped 1.9% to US$79.82 a barrel while gold backtracked 0.3% to US$1,954.83.

Australian government bonds were lower, with the 2 Year yield down to 3.96% and the 10 Year yield declining to 3.99%. US Treasury notes were higher, with the 2 Year yield rising to 4.76% and the 10 Year yield climbing to 3.82%.

The Australian dollar dropped to 68.28 US cents from its previous close of 68.85. The Wall Street Journal Dollar Index, which tracks the US dollar against 16 other currencies, edged up to 94.86.

Asia

Chinese shares ended mixed on Friday as the market's mood was buoyed by Treasury Secretary Janet Yellen's visit and Beijing's supportive policies for the property sector. Looking ahead, some analysts are optimistic for the mainland stock market. HSBC analysts believe "undemanding valuations and weak fund positions--both not far from the lows of October 2022--limit the downside risks." Software makers and telecoms led the gains. China Mobile increased 3.7% and iFlytek rose 2.7%. Among the losers were consumption brands and auto makers. China Tourism Group Duty Free dropped 1.7% and BYD Co. retreated 1.3%. The benchmark Shanghai Composite Index ended flat at 3237.70, the Shenzhen Composite Index was also little changed and the tech-heavy ChiNext Price Index decreased 0.6%. The Shanghai Composite closed up 1.3% for the week.

Hong Kong stocks ended slightly higher, capping a week of gains as investors looked forward to potentially upbeat 2Q earnings. Easing concerns about the Federal Reserve's tightening also supported the market, after promising US inflation data. The benchmark Hang Seng Index rose 0.3% to settle at 19413.78. Gains were broad-based. China telecom carrier China Unicom jumped 5.3%, container-shipping company Orient Overseas was 2.8% higher and aluminum-product maker China Hongqiao climbed 2.7%. Chinese sportswear makers also supported the market, with Anta Sports rising 2.55% and Li Ning gaining 2.05%.

Japanese stocks ended slightly lower, dragged by falls in auto and retail shares, amid lessened prospects for further Federal Reserve policy tightening. Nissan Motor dropped 2.1% and Suzuki Motor declined 2.2%. Seven & i Holdings shed 5.1% after its 1Q net profit dropped 35% due to weakness in its overseas convenience store business. The Nikkei Stock Average shed 0.1% to 32391.26.

Indian shares ended higher, capping a third week of gains amid rising optimism over the Fed's tightening cycle and as hopes continued for domestic earnings growth. Investors also focused on India's June wholesale-price index, which fell at a faster clip of 4.12% on year. Tata Consultancy Services advanced 5.1%, Tech Mahindra increased 4.5% and Infosys was 4.4% higher. Wipro added 2.7% after its 1Q net profit climbed 12% on year. The benchmark Sensex rose 0.8% to 66060.90.

Europe

European stocks traded mixed after similarly directionless trading in Asia and ahead of an expected slightly lower US open. The pan-European Stoxx Europe 600 dipped 0.1%, the French CAC 40 gained 0.1% and the German DAX dropped 0.2%.

"Today's only noteworthy economic numbers are US import and export prices for June, which are expected to reinforce the deflationary narrative of this week's data, with both month-on-month and annual numbers expected to be negative for the second month in succession," CMC Markets analyst Michael Hewson wrote. "We'll also be getting University of Michigan sentiment numbers for July."

London’s FTSE 100 index shed 0.1% to 7434 points, in line with European peers following strong week-for-week gains. Markets priced out the likelihood of further aggressive rate hikes against a backdrop that suggests prices might be slowing much faster than expected, Hewson explained in note.

Oil-exposed stocks dragged the British index lower, with BP and Shell closing down 2.0% and 1.4%, respectively, as Brent crude slipped 1.5%. Retailer Ocado was the worst performer as shares fell 4.1%, followed by Croda and Rolls-Royce, down 2.6% and 2.2%.

North America

The S&P 500 hovered near its highest close since April 2022 on Friday after signs of cooling inflation this week boosted stocks market-wide.

The broad US stock index edged lower for the day after earnings reports from big banks suggested resilience in the economy, but executives cautioned that a recession was still possible.

The Dow Jones Industrial Average and the tech-heavy Nasdaq Composite recorded their best weeks since March, rising 2.3% and 3.3%, respectively. The S&P 500 gained 2.4% in a broad-based advance, with all 11 sectors moving higher for the week.

The S&P 500 fell 0.1% for the day, while the Dow added 0.3%, or about 114 points. The Nasdaq Composite edged down 0.2%. Canadian stocks declined slightly, with the S&P/TSX Composite losing 0.1%.

Data midweek invigorated hopes that the Federal Reserve's rate-raising campaign could be drawing to a close. Inflation eased in June to its slowest pace in more than two years, the Labor Department said Wednesday, sending stocks higher. Major indices rose again Thursday after a separate report showed that producer prices rose at a weaker-than-expected pace.

Investors welcomed the price figures as evidence that the Fed may succeed in taming the red-hot inflation of recent months without plunging the economy into a recession. The central bank is expected to raise interest rates by a quarter-percentage-point later this month, but the signs of slowing inflation could lower the chances of yet more rate increases later in the year.

"It might be that we achieve that elusive soft landing," said Ellen Hazen, chief market strategist and portfolio manager at F. L. Putnam Investment Management Co.

Ms. Hazen said she has been positioned for the stock rally to broaden beyond the big tech stocks that have supported the market this year.

On Friday investors turned their focus to corporate earnings as banks began to share their results.

JPMorgan Chase, Wells Fargo and Citigroup beat analysts' forecasts for profit and revenue, with JPMorgan's profit jumping 67% and Wells Fargo's rising 57%. But there were signs of potential challenges ahead. Higher interest rates meant the banks had to pay more to depositors, and customers still withdrew some of their money.

JPMorgan shares rose 0.6%, while Wells Fargo shares slipped 0.3% and Citi shares fell 4%.

Investors said they are waiting for reports from smaller lenders before drawing broad conclusions about the health of the sector, which just months ago saw the failures of Silicon Valley Bank, Signature Bank and First Republic Bank.

"Hopefully we're out of the woods when it comes to a lot of the regional bank problems that we had earlier this year," said Brian Price, head of investment management at Commonwealth Financial Network.

Shares of UnitedHealth Group gained 7.2%, leading the S&P 500, after the healthcare and insurance company lifted its earnings guidance.