MARKET WRAPS

Stocks:

European shares rose on Friday as enthusiasm returned to the artificial-intelligence trade.

The Stoxx 600 rose in early trade , hitting a new high as the continent's tech stocks followed Asian peers higher. Earnings from major U.S. companies eased investor concerns about the viability of massive data-center investments.

Meanwhile, oil prices fell but remained on track for a monthly surge of around 20% after fresh signs of efforts for peace in the Middle East.

U.S. officials said Hamas had agreed to a broad plan to disarm but acknowledged many challenges ahead. The news comes after the U.S. said it launched a heavy wave of strikes in Iran Thursday.

"The U.S. and Iran engage in intermittent military exchanges but stop short of a return to high-intensity warfare," BMI said. "This sets the stage for volatile price movements over the coming weeks and months, with a shaky diplomatic track and volatile conditions on the ground driving sudden and extreme shifts in market fundamentals and risk premia."

Elsewhere, the Bank of Japan kept monetary policy unchanged

Friday as it assesses how its latest interest-rate increase is affecting the economy and price trends.

U.S. Markets:

Stock futures were set to climb on Friday after strong results from Amazon helped to lift other technology companies.

Forex:

The euro fell.

The currency could benefit if the dollar eases further in response to upcoming U.S. data, ING said.

The dollar recovered

after reaching a six-week low against a basket of currencies Thursday as the yen handed back gains following the Bank of Japan's decision to leave interest rates unchanged.

Bonds:

Eurozone government bond yields fell in opening trade, tracking U.S. peers.

Eurozone government bond yield spreads remained near recent highs

amid persistent geopolitical tensions and elevated oil prices, with the usual seasonal tightening yet to materialize, Societe Generale said.

Eurozone rates remained caught in an "endless cycle of hope and fear" with Bunds suffering their worst July in more than two decades , Barclays said.

Treasury yields declined in early trade, reversing Thursday's increases that saw the 30-year yield hit a 19-year high, according to Tradeweb data.

The substantial rise in Treasury yields across maturities

was likely the most critical factor arguing against any policy moves towards raising coupon [note, bond] supply, or even simply shifting forward guidance, HSBC said.

Energy:

Oil prices fell, with Brent crude down 1.1%, while WTI declined 1.4%.

Metals:

Gold prices slipped on Friday, but were headed for their first monthly gain in five months as investors closely monitored developments in the Middle East.

"Precious metals recovered as the dollar weakened after the softer GDP print, but the move was not fully convincing given the lack of a clear decline in Treasury yields," said Sucden Financial.

Copper

Copper edged higher in early trade. Sentiment across the base metal sector was boosted by the Fed leaving rates unchanged, while signs of short-term tightness also provided some support, ANZ Research said.

Iron ore

Iron ore declined in early trading. The fall is likely due to dampened expectations of Chinese stimulus that would lend support to steel demand, Commonwealth Bank of Australia said.

EMEA HEADLINES

BP Puts U.K. North Sea Business Up for Sale

British energy major BP said it is putting its U.K. North Sea business up for sale, paving the way to end oil production in its home country after more than half a century.

BP said Friday that it would market the business to potential buyers as it refocuses spending on higher-returning projects elsewhere. Earlier this year, the company held talks with Ithaca Energy on a potential sale but a deal fell through.

Siemens Healthineers Cuts Revenue Outlook on Diagnostics Weakness

Siemens Healthineers cut its full-year outlook for revenue growth, citing a weak performance in its diagnostics segment, but raised its guidance for adjusted earnings due to U.S. tariff refunds.

The German supplier of medical equipment said Friday that it now expects revenue for the year ending in September to grow by between 3.5% and 4.0% on a comparable basis compared with the year before. It had previously forecast comparable revenue growth of 4.5% to 5%.

Couche-Tard Plans to Buy Poland's Zabka for About $8.7 Billion

Canada's Alimentation Couche-Tard plans to acquire Poland's largest convenience retailer Zabka for about $8.7 billion to expand its footprint in central and eastern Europe.

The deal, if successful, would be the largest-ever acquisition for the owner of Circle K, which abandoned a $47 billion takeover attempt of Seven & i, the Japanese owner of 7-Eleven, last July.

French Inflation Climbs on Firmer Energy, Services Prices

French inflation rebounded in July on accelerating energy and services-sector prices, with the future path of inflation dependent heavily on the development of the conflict in the Middle East.

Annual consumer-price inflation in the eurozone's second-largest economy was 2.4% this month, up from 2.0% in June, according to EU-harmonized figures published Friday by France's statistics agency.

GLOBAL NEWS

U.S. Stock Futures Higher as AI Rebound Continues

U.S. stock futures rose in early European trade as enthusiasm returned to the artificial-intelligence trade.

Nasdaq futures jumped 1.2% after the tech-heavy index had its best day in over a month Thursday, as investors piled back into AI-linked stocks following positive earnings from tech giants Microsoft and Amazon. The AI optimism drove the volatile Kospi to its biggest daily rise on record in Korea, while European tech stocks also rallied.

Bank of Japan Stands Pat, Continues to See Inflation Around 2%

TOKYO-The Bank of Japan kept monetary policy unchanged Friday as it assesses how its latest interest-rate increase is affecting the economy and price trends.

As widely expected, the central bank maintained its policy rate at 1.0% at the end of its two-day meeting. It raised the target to a three-decade high in June, citing the possibility that underlying inflation could exceed its 2% target.

China's Factory Activity Gauge Unexpectedly Signals Contraction

A closely watched indicator of Chinese manufacturing unexpectedly signaled a contraction in activity for the first time in five months as factories were hit by extreme weather, raising pressure on Beijing to support growth.

The official manufacturing purchasing managers index dived to 49.2 in July from June's 50.3, according to data released Friday by the National Bureau of Statistics.

Japanese Yen Jumps to 2-Month High Versus Dollar in Possible Intervention

The Japanese yen jumped by 3% to a two-month high against the U.S. dollar on Thursday, raising the prospect that the Japanese government has intervened to prop up the currency after officials stepped up verbal warnings against speculative moves that threaten to accelerate inflation in Japan.

The move came after the yen recently dropped to a 40-year low of 163.94 per U.S. dollar, LSEG data showed.

U.S. Says Hamas Has Agreed to Broad Plan to Disarm

Hamas and other Palestinian militant groups agreed to a plan that, if followed, would see the groups disarm and lose power in the Gaza Strip as long as Israel withdraws from the enclave, U.S. officials said.

The officials, speaking to reporters Thursday evening, said the agreement is the start of an indefinite, multiphase process to end Hamas's rule in Gaza and rebuild the enclave. The officials acknowledged many challenges ahead, such as verifying the Palestinian groups' compliance and ensuring that a skeptical Israeli government doesn't scuttle any progress.

The U.S. Liberated Kuwait but Now Struggles to Protect It From Iran

In the decades since Kuwait's liberation in the first Gulf War, the U.S. has used the oil-rich emirate as one of the Army's biggest logistics hubs in the world, hosting thousands of troops, Abrams tanks and heavy artillery.

The American military footprint gave Kuwait a sense of security. Never again could a bigger, more powerful neighbor threaten it.

Panama Infuriated China. Now It's Paying the Price.

Panama is paying a price for its involvement in the great superpower competition between China's government and the Trump administration.

In January, under heavy pressure from Washington, Panama's supreme court handed President Trump a victory for his security ambitions in Latin America and dented China's influence in the region when it ousted Hong Kong's CK Hutchison from two ports the company operated at either end of the country's canal.

Migrants Perish Pouring Into Tiny Spanish Territory

At least 10 people died Thursday after thousands of migrants poured into the tiny Spanish territory of Ceuta from neighboring Morocco, overwhelming authorities and posing a political problem for Prime Minister Pedro Sánchez.

Footage broadcast on Spanish television showed large crowds of mostly young men swimming around breakwaters and climbing over fences to cross into Ceuta. Most carried little more than the shorts and flip-flops they were wearing. Some were equipped with life buoys or swimming fins. Many celebrated setting foot on Spanish soil by shouting, "Long Live Spain."

Write to priscila.barrera@wsj.com