Stock markets clamber higher as volatile week draws to close

LONDON: Asian and European markets headed into the weekend on a cautious note Friday after a volatile week, with eyes now fixed on the release of key US jobs data.

The non-farm payrolls (NFP) data is eagerly awaited because it could provide fresh clues for the direction of US interest rates at the Federal Reserve's monetary policy meeting scheduled for later this month.

Global equities dived at the start of this week after nuclear-armed North Korea fired a ballistic missile over Japan, sparking fears over a possible conflict.

Investors also fretted over the impact of deadly monster storm Harvey, which flooded streets and highways in Texas before hitting Louisiana.

"The week started with a missile launch from North Korea and tropical storm in the US but attention has gradually been diverted to the (economic) fundamentals," said analyst Craig Erlam at trading firm Oanda.

"Risk appetite has gradually improved throughout the week following a rather shaky start, which is normal during periods of heightened geopolitical risk."

Harvey, which crashing into the region as a Category Four hurricane last Friday, has been blamed for at least 38 deaths and tens of billions of dollars of damage.

Traders on Friday were given another positive lead from Wall Street, which rallied Thursday after Treasury Secretary Steven Mnuchin said he expects to overhaul the tax code by the end of the year.

He said details of the plan would be released within the month, with President Donald Trump calling for a 20-point reduction in the corporate tax rate to 15 percent.

The New York tycoon's promise to slash tax, ramp up infrastructure spending and wipe out red tape was one of the key drivers of a global markets rally in the months after his November election win.

Mnuchin's comments came a day after data showing forecast-busting growth in the US economy and private-sector jobs.

Oil prices meanwhile resumed their downward momentum as dealers assess the impact of Harvey on the crude-rich Gulf Coast, with dozens of refineries out of action -- meaning that the commodity cannot be processed.

The market had soared on Thursday, in line with a spike in US gasoline prices, on worries over the impact of Harvey on the region.

"Crude prices regained some mojo yesterday and joined the race higher led by products as a quarter of US refining capacity remained paralysed in the wake of Hurricane Harvey," noted PVM analyst Stephen Brennock.

To help alleviate the shortage of crude, Washington has decided to open its Strategic Petroleum Reserve, sending a million barrels of crude to the Phillips 66 refinery on Lake Charles in Louisiana to keep it operating.

- Key figures around 1015 GMT -

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London - FTSE 100: UP 0.2 percent at 7,445.60 points

Frankfurt - DAX 30: UP 0.5 percent at 12,119

Paris - CAC 40: UP 0.8 percent at 5,124.10

EURO STOXX 50: UP 0.6 percent at 3,442.70

Tokyo - Nikkei 225: UP 0.2 percent at 19,691.47 (close)

Hong Kong - Hang Seng: DOWN 0.1 percent at 27,953.16 (close)

Shanghai - Composite: UP 0.2 percent at 3,367.12 (close)

New York - Dow: UP 0.3 percent at 21,948.10 (close)

Euro/dollar: DOWN at $1.1896 from $1.1910 at 2100 GMT on Thursday

Pound/dollar: DOWN at $1.2924 from $1.2932

Dollar/yen: UP at 110.08 yen from 109.97 yen

Oil - Brent North Sea: DOWN 52 cents at $52.34 per barrel

Oil - West Texas Intermediate: DOWN 55 cents at $46.68