Equity markets worldwide experienced a rise on Friday as the likelihood of an imminent interest rate hike by the US Federal Reserve diminished. This shift in expectations led to a decrease in bond yields, bolstering investor confidence.

This uptick followed a series of losses in major markets, where investors were keenly monitoring factors like interest-rate forecasts, government bond yields, and the surge in crude oil prices. The reduced anticipation of stricter US monetary policy proved beneficial for equities, as market participants evaluated the future of borrowing costs and economic growth.

Despite this positive turn in equities, oil prices continued to weigh heavily on global markets. Brent crude surged to approximately $96 per barrel, marking its most significant weekly increase since mid-July. This rise is attributed to escalating tensions in the Middle East and apprehensions about possible disruptions in energy supplies.

The increase in oil prices poses a risk of intensifying inflationary pressures in major economies, potentially complicating central banks’ decisions regarding interest rates. As a result, investors are now attentively observing the evolving US interest-rate scenario, developments in crude oil markets, and geopolitical tensions for further guidance.