Markets Defy Geopolitical Tensions to Climb Higher

Global shares saw an uptick on Friday as investors dismissed rising tensions between the United States and Iran, which have driven oil prices to a six-month high. The pan-European STOXX 600 index made a 0.5% increase, marking its fourth consecutive week of gains, while U.S. futures tracked by the S&P 500 rose by 0.4%.

This session concluded a volatile week for investors. Despite geopolitical tensions, equity investors remain focused on economic fundamentals, with encouraging valuation metrics. In the STOXX 600, 57.1% of companies exceeded earnings expectations, while in the S&P 500, 73% of companies topped revenue forecasts.

The dollar experienced its largest weekly rise in four months, bolstered by robust U.S. data and Fed minutes suggesting a delay in interest rate cuts. Meanwhile, oil prices surged as U.S. President Trump set a deadline for Iran over its nuclear program, causing concern over potential disruptions in shipping lanes.