General risk apetite improves

European markets finished the week higher on average to secure the longest weekly winning streak in three years. European Central Bank President Mario Draghi addressed an audience in Florence, Italy, in the early afternoon. Markets remained unmoved by his call to increase fiscal powers for the euro zone.

Stocks around the world have been in demand this past week, partly because general risk appetite has improved in spite of Trump's move on Iran. That suggests that investors are fairly positive on the outlook for stocks, certainly a contrast to earlier in the year. Soft U.S. inflation data have helped, reining in expectations of aggressive interest rate hikes from the Federal Reserve. U.S. consumer prices rose a modest 0.2 percent in April, indicating that that broader inflation pressure in the world's No. 1 economy remains muted. High oil prices have also helped boost the share prices of oil companies.

Easing geopolitical tensions aided gains in Asian stocks, with Trump and Kim set for their landmark meeting in Singapore on June 12. Emerging-market stocks headed for the best week since February and most developing-nation currencies extended a rebound from the past month’s selloff.

U.S. stocks were mixed Friday, with major benchmarks on track for the best week in two months amid growing conviction that inflation will remain tame and as trade tensions eased. A slump in tech shares weighed on the S&P 500 Index, which fluctuated after paring gains of as much as 0.4 percent. Emergingmarket shares rose for a fifth day, the best streak since January. Oil slipped, but headed for a second weekly advance after the U.S. quit the Iran nuclear deal.

Back in Europe, the Bank of England held interest rates steady, after a first-quarter slowdown in economic growth tarnished the case for higher borrowing costs. The decision marked a sharp contrast to widespread expectations just a few weeks ago,