US stocks advanced on Friday, rising 0.2%, leading to a total weekly gain of 1.6%, the biggest weekly advance since January. Up 12% since January, the S&P 500 is on course for its best annual gain in four years.
Among the index sectors, technology shares rebounded and banks climbed with Treasury yields.
The US 10 year rate is now over 2.21%, having risen from lows of 2.04% at the start of the month. An inflation data release last Thursday which beat expectations helped to shift market expectations surrounding the next Fed policy move.
The Federal Reserve will announce their latest policy rate decision on Wednesday of this week.
European stocks fell, reducing their biggest weekly gain in two months, as a retreat in banks outweighed a rally in carmakers.
The Stoxx 600 lost 0.3%, reducing its gain for the week to 1.4%, auto producers advanced 0.8% and banks lost 0.9% in the worst performance among industry groups.
In the UK, equities also declined, falling 1.1% widening the weekly index drop to 2.2%.
In Asia overnight, Japanese markets were closed for a holiday. The Japanese yen dipped 0.3% against the dollar, extending Friday’s 0.5% drop.
Hong Kong-listed Chinese shares rallied overnight gaining 0.4%, led by a rise in brokerages after China relaxed rules on index futures trading.