LONDON: European stock markets rebounded Friday from heavy losses as investors took stock at the end of a week of volatile trading.
The London and Frankfurt markets grew 0.3 percent and Paris won 0.7 percent around the half-way mark.
Sentiment in the British capital was clouded somewhat as official data confirmed the economy slowed to 0.2-percent growth in the first quarter, as weak consumer spending started to bite.
Nevertheless, investors took their chance to fish for bargain stocks after heady losses the previous day.
"The bounce back in eurozone equities appears to have been driven by a rebound in technology stocks," NFS Macro analyst Nick Stamenkovic told AFP.
Both Frankfurt and Paris had closed down almost two percent Thursday on concerns that central banks are preparing to scale back stimulus measures, such as record-low interest rates, in reaction to solid economic growth and high inflation.
The euro declined Friday but held above $1.14 after a string of central bankers hinted at an end to loose monetary policies that have been in place since the global financial crisis.
The shift out of their easy-money policies -- led by Britain, the European Central Bank and Canada -- has weighed on the dollar.
Talk of tighter ECB rates has pushed the euro to more than one-year highs this week.
For years the greenback has benefited from a divergence between the Federal Reserve's move to higher rates -- including hikes this year -- and other regions. Rising interest rates make currencies more attractive because they offer a higher rate of return.
Elsewhere Friday, Asian equities kicked mostly into reverse after rallying the previous day, on fears that an end to the era of cheap money was drawing near.
On the upside, Shanghai reversed early losses Friday to end up 0.1 percent following data showing a forecast-beating jump in an index of Chinese manufacturing.
After years of loose monetary policies designed to propel global economies out of the financial crisis, improving growth and easing unemployment have allowed banks to start flagging tightening measures, including interest rate hikes.
While the upbeat outlook is welcomed as a sign of optimism, there are concerns the world economy cannot withstand a more stringent borrowing environment.
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