By Riva Gold 
   -- Crude oil rises with OPEC in focus 
 
   -- Higher bond yields lift bank stocks 
 
   -- Dow poised to snap losing streak 

Global stocks mostly inched higher Friday but remained on track to end the week with losses as escalating trade friction led investors to reassess prospects for growth.

The Stoxx Europe 600 edged up 0.4% in morning trading, following a mixed session in Asia. Futures pointed to a 0.4% opening gain for the S&P 500 and Dow Jones Industrial Average.

European bank stocks led Friday's advance, supported by higher government bond yields, which tend to boost lending income. Yields on 10-year Treasurys rose to 2.921% from 2.899% Thursday afternoon. Yields move inversely to prices.

The Federal Reserve determined Thursday that the largest U.S. banks were healthy enough to withstand a severe economic downturn.

Shares of oil-and-gas companies were little changed with Brent crude oil up 1.3% at $74.02 a barrel amid a potentially contentious meeting of major global crude producers. Iran said late Thursday it was still opposed to a deal to lift oil output, fraying a sense of consensus among OPEC members.

The broader Stoxx Europe 600 index remained on track to end the week 1.8% lower, while the Dow Jones Industrial Average was poised to lose 2.5% for the week. The Dow fell for an eighth-straight session Thursday, its longest streak of declines in more than a year.

The possibility that trade tensions could damage growth has become more real to investors this week after President Donald Trump called for a fresh round of tariffs on $200 billion of Chinese goods. Plus, German auto maker Daimler issued an unexpected profit warning late Wednesday saying Chinese retaliatory import duties on vehicles built in the U.S. would hurt sales and earnings.

"We're starting to see some corporate impact to some of the rhetoric coming out of Washington," said Barbara Reinhard, head of asset allocation at Voya Investment Management.

"Potentially targeting the auto sector has a far greater economic impact than anything that has been done so far," she added.

Europe's auto and parts sector fell another 0.3% Friday, bringing losses for the week to 6.4%.

Japan's Nikkei Stock Average fell 0.8% Friday and 1.5% for the week as a stronger Japanese currency and concerns around the impact of trade on multinationals hit the index.

Hong Kong's Hang Seng Index was up 0.2% Friday but down 3.2% for the week, while the Shanghai Composite Index edged up 0.5% Friday, paring its weekly decline to 4.4%.

When it comes to trade risks, "I'm more worried about financial conditions tightening than the direct impact," said Thomas Costerg, economist at Pictet Wealth Management, referring to risks that the uncertainty causes stocks to fall, credit spreads to widen and business confidence to weaken.

"There is a risk that markets think things get out of control and China imposes non-tariff barriers [...] but I think we'll end up at a negotiated solution and the direct impact is limited, a bit like a tax on the U.S. consumer," he added.

In currencies, the euro was last up 0.4% at $1.1652 as investors parsed data on activity in the eurozone manufacturing and services sectors. Business activity in the eurozone picked up in June for the first month in five.

Eurozone nations separately agreed on the final elements of a plan to get Greece out of its eight-year bailout program and make its debt more manageable.

The British pound was up 0.4% at $1.3294, adding to Thursday's gain after Bank of England officials said they expect growth to pick up in the months ahead and chief economist Andy Haldane joined dissenters voting for a rate increase, pushing up expectations for a possible rate rise this summer.

Write to Riva Gold at riva.gold@wsj.com

(END) Dow Jones Newswires

June 22, 2018 05:05 ET (09:05 GMT)