Financial markets showed a mixed tone on Friday as investors balanced encouraging US inflation data against disappointing signals from Nike (NYSE:NKE), a surprise tightening move by the Bank of Japan and a major new financial commitment from the European Union to support Ukraine.
US futures edge higher as softer inflation offsets Nike concerns
US equity futures traded modestly higher, extending Thursday’s rebound after weaker-than-expected inflation data bolstered expectations that the Federal Reserve may pursue a more accommodative policy stance next year. Gains, however, were capped by sharp losses in Nike shares.
By 03:30 ET, futures on the S&P 500 were up 0.3%, Nasdaq 100 futures rose 0.4% and Dow Jones futures added around 0.1%.
Wall Street closed higher in the previous session, ending a four-day losing streak, after inflation figures eased concerns about persistent price pressures. Despite the bounce, US indices remain on track for weekly declines, with the S&P 500 and Dow Jones Industrial Average both down close to 1%, while the Nasdaq Composite has also slipped about 0.8% so far this week.
Attention later in the session will turn to the University of Michigan’s consumer sentiment survey and November existing home sales, as investors look for further clues on the Fed’s policy trajectory into 2026.
Nike remains in focus after its stock dropped sharply in premarket trading. The athletic apparel group reported another contraction in sales from its Greater China segment during its fiscal second quarter, marking the sixth consecutive quarterly decline in the region.
Addressing the issue during the post-earnings call, CEO Elliott Hill said “it’s clear we need to reset our approach to the China marketplace,” which accounts for roughly 15% of group revenue.
EU leaders approve major loan package for Ukraine
European Union leaders have agreed to provide €90 billion ($105 billion) in financial support to Ukraine over the next two years, opting to fund the package through joint borrowing rather than drawing on frozen Russian assets.
The bloc had previously debated whether to deploy approximately €210 billion in immobilised Russian funds, most of which are held in Belgium, to back a reparations-style loan. Ultimately, leaders chose a collective borrowing approach supported by the EU budget.
“Ukraine will only repay this loan once Russia pays reparations,” EU Council President Antonio Costa said on Friday. “The only way forward is a ceasefire and a negotiated peace. Our political and financial support to Ukraine will not falter.”
The agreement is intended to provide Kyiv with greater financial certainty, while reinforcing Europe’s influence in US-led diplomatic efforts aimed at ending the conflict.
Ukrainian President Volodymyr Zelenskyy welcomed the decision, saying, “I am grateful to all leaders of the European Union for the European Council’s decision,” and stressing that it is vital that “Russian assets remain immobilized and that Ukraine has received a financial security guarantee for the coming years.”
Bank of Japan raises rates to highest level in decades
The Bank of Japan increased interest rates earlier on Friday, following guidance it had previously signalled, and indicated that further tightening remains possible if economic momentum and inflation trends continue.
The central bank lifted its short-term policy rate from 0.5% to 0.75%, the highest level since 1995, marking its second rate increase of the year after a similar move in January.
The BOJ said it expects Japanese companies to continue lifting wages in 2026 alongside improving corporate profitability. With labour market conditions expected to remain tight, policymakers said it is “highly likely” that wages and inflation will rise at a moderate pace.
Despite the hike, the bank emphasised that real interest rates remain “significantly negative” and that financial conditions are still broadly supportive of economic growth. It added that it stands ready to raise rates further and gradually scale back monetary stimulus if the economy evolves in line with its forecasts.
Trump signs order to accelerate return to the moon
US President Donald Trump has signed an executive order aimed at returning American astronauts to the moon by 2028 and laying the groundwork for a permanent lunar presence in the following years.
In the order, Trump said the US must pursue a space policy that advances national security objectives and “lay the foundation for a new space age.”
The directive places NASA’s Artemis programme at the centre of these efforts, targeting a lunar return by 2028 and establishing the basis for a sustained outpost by 2030. It also calls on federal agencies, including the Pentagon and intelligence bodies, to develop a comprehensive space security strategy, while reducing oversight powers of the National Space Council.
Trump had outlined similar ambitions during his first term, initially setting a target of 2024 for a return to the moon.
Oil prices head for another weekly decline
Crude oil prices were on course for a second consecutive weekly drop, as concerns about oversupply and rising optimism around a potential Russia-Ukraine peace agreement outweighed fears of supply disruptions linked to a US-announced blockade on Venezuelan oil shipments.
Brent crude slipped to around $59.74 per barrel, while US West Texas Intermediate traded near $55.95. Both benchmarks were down more than 2% on the week.
Markets continue to price in expectations that global oil supply will outstrip demand into 2026, driven by growing output from non-OPEC producers and muted consumption growth in major economies. US crude prices are down more than 21% year-to-date, marking their weakest annual performance since 2018, while Brent has fallen about 20%, its worst showing since 2020.
Earlier in the week, Trump announced a blockade targeting tankers carrying Venezuelan oil already under US sanctions, although the extent of enforcement remains unclear. He also said on Thursday that talks aimed at ending the war in Ukraine are “getting close to something” ahead of planned discussions between US and Russian officials this weekend.
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