US and European stocks enjoyed a banner Friday to close out a volatile week, helped by the eurozone's economic recovery and anticipation of more blowout US earnings next week after this week's positive round of results.
European stock markets rallied on Wednesday and Wall Street extended gains as investors took heart in strong earnings reports from Coca-Cola and other consumer-oriented companies.
The U.S. dollar erased earlier gains on Tuesday as global markets steadied after an overnight selloff, though popular reflation trades in the $6.6 trillion a day currency markets were under pressure amid fears of a stalled global recovery. Investors are keeping an anxious eye on the fast-spreading Delta variant of coronavirus, now the dominant strain worldwide, fearing it could stymie the global economic recovery. The United States has seen a surge in infections, especially in areas where vaccinations have lagged.