US stocks were mixed on Friday with the Dow and S&P 500 finishing in positive territory while the Nasdaq dropped more than 1%. Continued strength from the financial sector helped push the Dow higher while the tech sector struggled following a number of disappointing quarterly results.
The Dow Jones added 49.9 points to close at 11,496.6, the S&P 500 edged 0.4 points higher to 1,260.7. The Nasdaq dropped 29.52 points to finish at 2,282.78.
Citigroup was the latest bank to beat analysts expectations with its quarterly results. The company posted a loss of $2.5 billion but said it would keep cutting costs and getting rid of poorly performing assets. Shares surged 7.7% as a result.
The tech sector struggled from the open as investors took in earnings figures that had been released after the close on Thursday. Google, Microsoft and Advanced Micro Devices all missed earnings per share estimates to fall 9.8%, 6% and 12.3% respectively.
Elsewhere, Schlumberger posted second quarter profit that rose nearly 13%, topping expectations. Shares in the oil service provider climbed 3.9%.
US light crude oil for August delivery closed $0.41 lower at $128.88 having bounced above and below the $130 level for most of the session. The fall helped to complete the biggest ever weekly drop for the commodity since oil futures began trading in New York in 1983.
COMEX gold for August delivery fell $12.70 to close at $958 an ounce.
Treasury prices fell, raising the yield on the 10 year note to 4.09% from 4.04% late Thursday.
The Tokyo Stock Exchange is closed today.
The Hang Seng is currently 712.12 points higher at 22,586.31 this morning. HSBC Holdings leads the rise following Citigroup's better than expected results. Industrial & Commercial Bank of China Ltd, the nation's biggest lender, advanced to a six week high after the country's commercial banks lowered their average bad loan ratio.
The FTSE 100 Index powered 1.7% ahead for a second day of strong gains after a dramatic U-turn on relief over Citigroup's first quarter figures. London's blue chips extended the 2.5% rally seen Thursday after a turbulent week, which had seen the Footsie plunge to three-year lows before recovering over the past two days. Better-than-expected results from Wall Street banking giant Citigroup helped continue the bounce back from banking shares, which drove the FTSE 100 90.1 points higher to close at 5376.4.
US-facing building supplies firm Wolseley led the charge amid hopes the credit write-down corner may have been turned. The group's shares closed up more than 14% to 327p. Barclays followed on the risers board, confirming it had raised £4.5bn of new capital through a share issue. Wealthy overseas investors such as sovereign wealth funds are providing most of the funds after just 19% of existing shareholders took part in the share issue. Shares were initially flat after the news, but jumped 10% to 320.25p, amid the Citi-inspired rally. Lloyds TSB was next, adding 30.5p to 331p, with Royal Bank of Scotland also enjoying a second day rebound rising 18.1p to 197.6p, outstripping the 9% gain seen during Thursday's session. The prospects for HBOS's 275p a share rights issue looked bleak despite the shares climbing 13.75p to 282p. Shares were down for much of the morning and were below the offer 275p price at the 11am deadline for acceptances.
Miners remained on the back foot thanks to falling commodity prices, with Eurasian Natural Resources down 6% to 1036p, while Lonmin was also down heavily, losing 104p to 2410p.
Oil trading at around $130 a barrel, more than 11% down on last week's $147 high, also depressed energy-related firms. Royal Dutch Shell fell 4p to 1795p, with prospector Tullow Oil 10p cheaper at 783.5p. But British Airways was among the index's biggest risers, up nearly 7% to 242p. Cruise ship giant Carnival also added 136p to 1745p.
Supermarket giant Tesco was under pressure despite better news on the sales front for high street bellwether John Lewis. The department store chain revealed a 5.9% jump in revenues for the week to last Saturday, but Tesco fell 13p to 375.8p after two European contemporaries issued profit warnings.