Federal Reserve Chair Janet Yellen delivered an upbeat message on the economic outlook to lawmakers and parried attacks from Republicans who say the Bank is too secretive and needs stronger oversight. Yellen repeated that the Fed is likely to raise its interest rate this year, assuming its forecasts for stronger growth and lower unemployment are realized.
US retail sales unexpectedly fell in June as households cut back on purchases of automobiles and a range of other goods, raising concerns the economy was slowing again. Sales fell 0.3% in June, the weakest reading since February, after May's 1% increase.
US homebuilder sentiment stayed at its strongest level in almost a decade in July as the housing market broadly improved despite an uptick in mortgage rates from earlier this year. The NAHB/Wells Fargo Housing Market index stood at 60 in July. Readings above 50 indicate more builders view market conditions as favorable than poor.
The Bank of Canada cut its benchmark interest rate for the second time this year as it warned lower oil prices have caused the economy to contract in the first half of the year. The Bank lowered its benchmark rate by 0.25% to a five year low of 0.5%.
Eurozone industrial production slipped in May, against expectations of a slight rise, suggesting that the area's economic recovery stalled in the second quarter after a solid start to the year. Industrial production in the eurozone fell by 0.4% month-on-month, the third consecutive month of a flat or negative monthly reading.
The UK's unemployment rate rose for the first time in two years, despite a faster growth in earnings, adding to the debate about when the BoE will raise interest rates from their record low of 0.5%. While the unemployment rate rose to 5.6% in March to May period, the average weekly earnings including bonuses rose 3.2% at an annual pace.
European creditors moved cautiously towards re-opening funding to Greece's stricken economy on Thursday, hours after a fractious Greek parliament approved a tough bailout program aimed at preventing a chaotic exit from the euro. This comes after eurozone leaders agreed on a roadmap to a possible third bailout for Greece on Monday.
China's economy grew an annual 7% in Q2, steady with the previous quarter and slightly ahead of forecasts. Both industrial-output and retail sales growth quickened to 6.8% and 10.6% respectively, beating market expectations. The government has forecast economic growth of around 7% for 2015, which would be the weakest rate in 25 years.
The Bank of Japan (BoJ) kept monetary policy steady and largely maintained its upbeat inflation forecasts, even as soft exports and household spending forced it to trim its economic growth projection slightly. At a quarterly review of its long-term estimates, the BoJ cut its growth forecast for the year ending in March 2016 to 1.7% from 2% in April.
Higher food prices pushed India's retail inflation to an eight-month high in June, dampening hopes of an interest rate cut by the Central Bank in the near future. The consumer price index rose to 5.4% year-on-year in June, higher than 5.01% in May.
Oil prices were steady on Friday, underpinned by a power outage at UK's largest oilfield, but risks of oversupply after the Iranian nuclear deal and mixed economic data held back prices. Front-month Brent crude was up 13 cents, trading at US$57.05 a barrel.
