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US stocks open higher; Apple ( AAPL ) up 4%

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Nasdaq has rebounded after Monday plunge

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Currency markets brace for Canada, Mexico tariffs

By Harry Robertson

LONDON, Jan 31 (Reuters) - Global stocks rose on Friday

at the end of a volatile week for markets, as sentiment was

buoyed by Apple's ( AAPL ) earnings report and an in-line U.S. inflation

reading.

Meanwhile, currency traders were bracing for U.S. President

Donald Trump to put 25% tariffs on Canada and Mexico as a

Saturday deadline neared, a move that could disrupt nearly $1.6

trillion in annual trade.

The U.S. S&P 500 stock index rose 0.42% in early

trading and was on track to end the week broadly flat, while the

tech-heavy Nasdaq climbed 0.77% but was set to end the

week 0.5% lower.

The Nasdaq dropped 2.9% on Monday as the surging popularity

of cheap Chinese AI model DeepSeek shook investor confidence in

U.S. tech stocks and sent chipmaker Nvidia ( NVDA ) plunging

17%.

Earnings reports and forecasts this week from the likes of

Meta and Tesla have helped sentiment recover

somewhat, however.

Apple ( AAPL ) added to the cautiously optimistic mood late

on Thursday when it forecast relatively strong sales growth,

pushing its stock up 4.2% in early Friday trading.

Europe's continent-wide Stoxx 600 index was last up

0.25%, with tech shares up 1.4%.

In currency markets, options contracts showed investors were

preparing for the potential for swings in the Canadian dollar

and Mexican peso . The Canadian dollar was last

down around 0.2% on the day but the peso was slightly higher.

Trump has set a Saturday deadline to impose punitive duties

over his demands that Canada and Mexico take stronger action to

halt the flow of illegal immigrants and the deadly opioid

fentanyl and precursor chemicals into the U.S.

"There is big market complacency in terms of the manner that

the market could digest the tariffs," said Michael Nizard,

multi-asset chief investment officer at Edmond de Rothschild.

The U.S. dollar index was last up 0.26% on the day at 108.38

and was on track for a 0.85% weekly gain. The euro and

sterling were both around 0.2% lower .

Data on Friday showed the U.S. personal consumption

expenditures (PCE) price index rose 0.3% last month after an

unrevised 0.1% gain in November, in line with economists'

expectations.

The figures also showed consumer spending surged, briefly

pushing up 10-year Treasury yields, which were last flat at

4.512%.

Yields, which move inversely to prices, are on track to fall

more than 10 basis points across the week, largely reflecting

investor buying as tech stocks fell on Monday.

Data on Thursday showed U.S. economic growth slowed in the

fourth quarter, but remained robust enough for investors to

expect the Federal Reserve - which held interest rates on

Wednesday - to lower borrowing costs only gradually this year.

German bond yields fell for a second day on the

back of weaker than expected underlying inflation data. The

European Central Bank cut rates on Thursday and signalled more

easing was coming.

Brent crude oil futures were steady at $76.80 per

barrel.