LONDON: European stock markets steadied on Friday, with London lifted by an upgrade to British economic growth, but sentiment remained fragile at the end of a particularly turbulent week for emerging market currencies.
At midday, London's FTSE 100 index of top blue-chip companies rose 0.29 percent to 6,465.57 points, after data showed the British economy grew 0.7 percent in the second quarter, up from the prior estimate of 0.6 percent.
Frankfurt's DAX 30 nudged 0.01 percent lower to 8,396.70 points, after confirmation that the German economy grew 0.7 percent in the second quarter.
The CAC 40 index in Paris meanwhile dipped 0.35 percent to 4,044.88 compared with Thursday's closing levels.
In foreign exchange activity, the euro firmed to $1.3358 from $1.3354 late in New York on Thursday.
The dollar rallied as high as 99.14 yen, which was the highest level since August 5 and compared with 98.68 yen late Thursday.
Sterling strengthened against the euro, with one pound buying 1.1687 euros from 1.1671 on Thursday. It also rose against the dollar, to $1.5614, from $1.5588 a day earlier.
The Russian ruble continued to drop meanwhile, with one dollar costing 33.0135 rubles from 33.0424, but the Turkish lira firmed to $1.9847 to the from $1.9936 in late trading on Thursday.
Asian stock markets firmed on Friday as a slew of upbeat manufacturing data from around the globe offset concerns about the US Federal Reserve's plans for its stimulus programme.
The positive lead provided a much-needed boost for emerging economies, which have suffered a torrid week as dealers bet on an end to the Fed's monetary easing.
Tokyo jumped 2.21 percent thanks to a rally in the dollar against the yen. The weaker yen boosts the profits of Japanese exporters.
Sydney climbed 0.94 percent and Seoul added 1.14 percent, while Hong Kong fell 0.15 percent on profit-taking, Shanghai shed 0.47 percent and Jakarta dipped 0.04 percent.
Mumbai rose 1.13 percent, its second straight day of gains, as the rupee showed some signs of a recovery.
Both Brazil and Indonesia on Friday moved to shore up their flagging currencies, as emerging nations come under huge pressure from outflows of foreign cash that have sent shock waves through markets.
The Bank of Brazil said is ready to intervene heavily on currency markets from Friday, making available $55 billion to prop up the sagging real.
The central bank said it will engage in so called swap operations. It will offer dollars in the futures market, with a pledge to buy them back in a determined time frame no matter what they are worth.
Despite the news, the Brazilian real, which has dropped 18.5 percent in value so far this year, remained close to a four-year dollar low.
The Indian rupee one of the worst performing currencies in Asia recovered somewhat after striking a lifetime low point at 65.56 to the dollar on Thursday.
Huge capital outflows: analyst
"Emerging market (EM) economies continue to suffer huge capital outflows on the back of anticipation of Fed tapering, with Brazil the latest country to announce intervention," said dealer Alistair Cotton at trading firm Currencies Direct.
He added: "We can expect the selling of EM currencies to accelerate once more when the Fed next hints tapering is imminent."
In Asia, Indonesia announced measures to hike taxes for imports of some luxury goods, reduce oil and gas imports by increasing the use of biodiesel, and boost exports with tax breaks for certain industries.
Indonesia's rupiah currency is sitting just short of 11,000 to the dollar, its lowest since mid-2009.
The move comes as emerging markets around the world start to take action in response to investors fleeing on fears that the US may soon wind down its huge stimulus programme.
Earlier this week, India's central bank said it would pump $1.26 billion into the country's ailing financial system to support the rupee and its ailing economy.
"The ongoing market turmoil cannot be shrugged off entirely," said analyst Gareth Leather at the Capital Economics consultancy in London.
"For some economies notably India and Indonesia efforts to shore up weakening currencies are forcing central banks to adopt tighter monetary policy than they otherwise would.
"However, most economies are in a good position to withstand currency depreciation. And the stronger global backdrop which lies behind recent market moves should help much of the region."
In Wall Street action on Thursday, New York's Dow Jones Industrial Average index rose 0.44 percent, aided by upbeat global economic data, and the tech-heavy Nasdaq jumped 1.08 percent.
Those rises came despite an unexplained glitch that shut down trading on the Nasdaq for about three hours, which interrupted business on other markets.
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