Global Markets Rise on Strong Earnings and Data

Asia-Pacific stock markets traded mixed on Friday, with Australian equities reaching a record high. The S&P/ASX 200 rose 0.58% to 8,689.4, driven by gains in mining giants BHP and Rio Tinto, and biotech firm CSL. Japan's Nikkei 225 and Topix opened higher, while South Korea's Kospi added 0.21%. Hong Kong's Hang Seng Index and Mainland China's CSI 300 also started the day higher. The positive sentiment was fueled by strong US economic data and better-than-expected corporate earnings. Bitcoin prices surged above $120,000 after the US House of Representatives passed a bill to create a regulatory framework for stablecoins.

European stocks are expected to open higher as investors await earnings updates from companies such as Burberry, Danske Bank, and Saab, and economic data from Germany, Italy, and Spain. Burberry reported a smaller-than-expected decline in sales, and global markets have been buoyed by optimism about the US economy and positive earnings from US companies such as Netflix and PepsiCo. Overnight, Australian stocks reached a record high, and Japanese inflation data also influenced regional markets. European stock futures are up, with Euro Stoxx 50 futures 0.35% higher and Germany's DAX futures 0.45% higher.

The U.S. economy appears resilient despite concerns over tariffs and inflation, with June retail sales beating expectations and weekly jobless claims dropping below forecasts. The S&P 500 and Nasdaq have reached new records, driven by solid earnings and economic data. Netflix posted a strong earnings beat, with 16% revenue growth in Q2 2025. However, concerns linger over the potential impact of tariffs, with the Trump administration's tariff deadline looming on August 1. Meanwhile, Amazon continues to lay off employees in its cloud computing division, and the Trump administration is taking aim at solar and wind projects on U.S.-owned lands.

U.S. stock futures rose on Friday after a batch of earnings and economic reports pushed the S&P 500 to a new record close. Netflix fell over 1% in extended trading despite beating earnings and revenue expectations and raising its revenue guidance. The S&P 500, Dow Jones, and Nasdaq Composite all rose on Thursday, with the Nasdaq on track for a 1.5% gain for the week. The economic data, including a drop in initial jobless claims and a beat on retail sales, supported the market's upward trend. Earnings from 3M and American Express are due out, along with preliminary July consumer sentiment data, expected to show a slight increase.