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Earnings from Amazon ( AMZN ), Apple ( AAPL ) lift Nasdaq futures by 1.1%

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Nikkei heads for 16% monthly gain, best since 1990

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Chinese shares lose ground after trade truce, dismal PMI

data

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Dollar near 3-month highs, oil down for three months

(Updates with euro zone inflation data, ahead of Wall Street

restart)

By Marc Jones and Stella Qiu

LONDON/SYDNEY, Oct 31 (Reuters) - World shares were set

for a seventh straight month of gains and the dollar was near a

three-month high on Friday, after Amazon ( AMZN ) and Apple ( AAPL ) earnings

reinforced global tech optimism and the hope that massive AI

spending will ultimately bolster growth.

Asia saw Japan's Nikkei close out its best month in 35 years

overnight but European stocks were a tad lower as higher euro

zone services inflation numbers showed why the European Central

Bank had been happy to dampen rate cut talk the previous day.

Nasdaq futures jumped 1.2% and S&P 500 futures

gained 0.6%, though, with forecast-busting Amazon ( AMZN )

earnings lifting its shares more than 11% in pre-market trading

and predictions of bumper iPhone sales hoisting Apple ( AAPL ) stock

up more than 2%.

That offset tumbles suffered by Meta and Microsoft ( MSFT )

the previous day over worries about their surging AI

spending. Six of the "Magnificent Seven" U.S. tech megacaps have

now reported, with only Nvidia ( NVDA ) - which has just become

the world's first $5 trillion company - left to come in three

weeks' time.

In Asia, Japan's Nikkei had finished October with a

2% jump, boosting its weekly and monthly gains to more than 6%

and 16.5%, respectively. That was the largest monthly rise since

1990, turbocharged by hopes for aggressive fiscal stimulus under

new Prime Minister Sanae Takaichi.

This week has also seen the Bank of Japan hold interest

rates steady despite many economists predicting a hike.

Chinese blue chips and Hong Kong's Hang Seng

both skidded roughly 1.5% though after data showed

China's factory activity contracted at the fastest pace in six

months in October.

Investors also locked in gains after a trade truce reached

by U.S. President Donald Trump and Chinese President Xi Jinping,

that will lead to reduced U.S. tariffs on imports of Chinese

goods and ensure rare-earth exports from China continue.

SUBTLE SHIFTS

This week, major central bank meetings have delivered

decisions that have subtly shifted expectations. The biggest

surprise came from Federal Reserve Chair Jerome Powell, who

pushed back against the market's sanguine view about a rate cut

in December.

Both Treasuries and European government bonds were steady on

Friday, but were set for weekly losses.

Two-year Treasury yields - which move inversely

to prices - ticked up to 3.61%, having risen 12 basis points

this week already, while the 10-year yield was above

4.10% again and up more than 10 bps for the week.

Germany's 10-year Bund yields, the euro area's

benchmark, were broadly flat on the day at just under 2.65% and

set for a weekly rise of 2.5 bps.

The rise in U.S. yields offered support to the U.S. dollar

, which was retesting this week's three-month highs

at 99.58 against its major peers.

It left the euro stuck at $1.1556 despite the ECB's

moderately more positive signals on Thursday. The central bank

also published a survey on Friday showing euro zone firms are

seeing a slight improvement in business conditions and that

investment into sectors like artificial intelligence is booming.

"What the data this week suggests is that maybe we have got

something fundamentally wrong about the impact of trade

tariffs," Morgan Stanley's Chief Europe Economist Jens

Eisenschmidt said, also highlighting the growth boost from AI.

"It doesn't make me revise anything dramatically, but it

makes me think," Eisenschmidt added, having also pushed back his

forecast for the next ECB rate cut to March from December.

In commodities markets, oil prices were headed for a third

straight monthly fall as a stronger dollar and the weak Chinese

data cast a shadow, and as rising supply from major producers

offset new Western sanctions on Russian exports.

Brent crude futures slipped 0.2% to $64.88 a barrel,

while U.S. West Texas Intermediate crude was at $60.38,

down 0.8%.

Spot gold prices retraced some overnight gains as

well to sit at $4,023 per ounce. They were down roughly 2.5% for

the week and well below the record high of $4,381 hit just last

week, while cryptocurrency bitcoin is also down

nearly 4% this week.