Stocks Rise as Market Calm Returns; Oil Heads for Sharp Weekly Drop

Global equities advanced Friday as investor sentiment improved ahead of key diplomatic talks, easing concerns and supporting a third consecutive weekly gain in Europe.

Asian markets posted their strongest weekly performance in over three years, driven by renewed optimism around regional stability and potential easing of supply disruptions.

The pan-European STOXX index climbed 0.6%, led by healthcare and technology stocks, reflecting stronger risk appetite across sectors.

U.S. futures steadied after earlier losses, following the S&P 500’s 0.6% gain on Thursday, marking its seventh straight day of upward momentum.

Market volatility indicators declined notably, signaling reduced financial stress and growing confidence among investors heading into the weekend negotiations.

MSCI’s Asia-Pacific index outside Japan rose 0.9%, bringing weekly gains to 7.3%, its best performance since late 2022.

Oil prices rebounded slightly but remained on track for an 11% weekly decline, as supply concerns eased despite ongoing uncertainty in key transit routes.

Currency markets reflected mixed signals, with the dollar heading for its worst week since January, while investors await U.S. inflation data for policy direction.

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