BANGKOK — Shares declined in Europe on Friday following a mixed session in Asia. U.S. stock futures were little changed after U.S. inflation data showed a better-than-expected improvement in July.

Britain’s FTSE 100 fell 0.3% to 10,744.31. Germany’s DAX rose 0.5% to 26,442.54. France’s CAC 40 edged less than 0.1% lower to 8,648.48.

In Asia, Tokyo’s Nikkei 225 index gained 0.6% to 68,713.80. South Korea’s Kospi rose 2.4% to 6,977.94. The Shanghai Composite index was nearly unchanged at 3,927.18.

Australia’s S&P/ASX 200 slipped 0.8% to 9,115.20. India’s Sensex fell 0.2%. MSCI’s broadest index of Asia-Pacific shares outside Japan closed higher by 0.92% at 1,636.51.

U.S. wholesale prices were 4.7% higher in July than a year earlier. The U.S. wholesale inflation rate was 5.5% in June. Traders are betting on a 35% chance that the Federal Reserve will raise the federal funds rate at its next meeting in September, down from roughly 50% two days prior.

Any increase by the Federal Reserve would be the first in more than three years. U.S. President Donald Trump has been lobbying for lower interest rates.

"The disinflation ducks are starting to line up, and with oil also backing off, the market has steadily stripped away the case for another near-term Fed hike," Stephen Innes of SPI Asset Management said in a commentary. S&P 500 futures edged 0.1% higher. Dow Jones Industrial Average futures were down 0.1%.

On Thursday, the S&P 500 rose 0.7% to an all-time high close of 7,798.99. On Thursday, the Dow Jones Industrial Average added 0.1% to 53,839.99. On Thursday, the Nasdaq composite climbed 0.8% to 26,803.03.

Oil prices resumed climbing early Friday. Brent crude gained 1% to $87.96 per barrel. U.S. benchmark crude surged 1.7% to $82.60 per barrel.

Brent crude prices ranged between $72 and $102 in July. Clashes between Iran-backed Houthi rebels and government forces in Yemen have raised fears that the country’s civil war could reignite. The U.S. dollar fell to 159.16 Japanese yen from 159.50 yen. The euro rose to $1.1556 from $1.1530. The U.S. and Japan recently jointly intervened to prop up the yen. Nigel Farage regained the parliamentary seat he quit a month ago, defeating candidate Count Binface in a special election.

Why It Matters

The shift in Federal Reserve rate hike expectations reflects changing inflation dynamics, with wholesale price growth slowing from 5.5% in June to 4.7% in July. This adjustment influences global equity markets, as seen in the divergent performance across European and Asian indices on Friday.

Geopolitical tensions in Yemen continue to affect oil price volatility, with Brent crude fluctuating between $72 and $102 in July before recent gains. These factors combine to shape investor sentiment regarding monetary policy and energy costs.

Timeline

On July 1, 2026, the Federal Energy Regulatory Commission invited comments on its proposed index level used to determine annual changes to oil pipeline rate ceilings, proposing to use the Producer Price Index for Finished Goods minus 1.42% for the five-year period commencing July 1, 2026. On July 14, 2026, the U.S. wholesale inflation rate was recorded at 5.5% for June. By July 31, 2026, Brent crude prices had ranged between $72 and $102 during the month.

On August 12, 2026, several AI-related companies reported better earnings for the spring than analysts expected. On August 13, 2026, global shares were mostly higher, powered by gains for AI-related stocks including computer chips. That same day, shares in Samsung Electronics surged 4.9%, the Dow Jones Average added 0.1% to 53,839.99, and the Shanghai Composite index fell 0.5% to 3,926.96.

What's New

Additional reporting indicates that global shares were mostly higher on Thursday, powered by gains for AI-related stocks including computer chips. Several AI-related companies reported better earnings for the spring than analysts expected on Wednesday. MSCI’s broadest index of Asia-Pacific shares outside Japan closed higher by 0.92% at 1,636.51.

PureSource News previously reported that Asian shares declined as bond yields rose during the Iran conflict. The U.S. and Japan recently jointly intervened to prop up the yen. Shares in Samsung Electronics surged 4.9% on Thursday. Traders are betting on a 35% chance that the Federal Reserve will raise the federal funds rate at its next meeting in September, down from roughly 50% two days prior. PureSource News previously reported that global stock markets increased after the U.S. jobs report.

How Sources Differ

Regarding the price of Brent crude, Intercontinental Exchange Brent Crude futures data states that Brent crude gained 1% to $87.96 per barrel. In contrast, other reports state that the price for a barrel of Brent crude oil fell 2.1% to $87.07 on Thursday.