NEW YORK/LONDON -The dollar edged higher on Friday after upbeat U.S. retail sales data reaffirmed that the economy accelerated in the second quarter, but global stock markets declined as investors grapple with inflation expectations and when interest rates may begin to rise.
Stocks on Wall Street initially rose after the Commerce Department said retail sales rebounded 0.6per cent in June as demand for goods remained strong even as spending shifts to services. Economically sensitive industrials, energy, consumer discretionary, financials and materials are projected to more than double earnings, while so-called big tech and non-cyclicals are expected to grow 36per cent and 10per cent, respectively, Golub said.
In Europe, Germany's 10-year yield fell to a new three-month low in cautious trade ahead of next week's European Central Bank meeting.