US, European stocks mixed before weekend

LONDON: European and US stock markets were mixed on Friday, following gains elsewhere, as investors continued to dwell on inflationary concerns, dealers said.

London stocks gained 0.4 percent in afternoon exchanges, while Frankfurt and Paris were slightly softer over in the eurozone.

The Dow Jones index also showed a gain of 0.4 percent in early New York trading.

Markets had jumped Thursday after the Bank of England (BoE) became the latest major central bank to maintain ultra-low interest rates, echoing the views of the US Federal Reserve and the European Central Bank that inflationary spikes are only temporary.

Traders have for months worried that the blistering global recovery will fan price increases and force rate hikes -- but central bankers have sought to downplay inflation.

"Today has seen a return to the indecisive mood evident throughout much of the week, with yesterday's boost courtesy of the BoE proving short-lived," said IG analyst Joshua Mahony.

"That BoE meeting did alleviate fears of a hawkish swing across the central banks, but ultimately whether the BoE or the Fed are right will come down to the trajectory of inflation over the coming months."

In Asia, stocks rose after US lawmakers and the White House agreed a rare bipartisan deal on infrastructure that should provide another huge cash injection for the world's top economy.

Optimism across trading floors was already buoyant after a string of central bank officials sought to soothe concern that accommodating policies would come to an end.

Buyers were given an extra boost by news that Joe Biden had reached an infrastructure deal worth nearly $1 trillion with lawmakers from both parties that could lead to the biggest spending in decades on roads, bridges, ports and broadband internet service.

Politicians have "come together and forged an agreement that will create millions of American jobs, and modernise our American infrastructure to compete with the rest of the world and own the 21st century", Biden said.

The oil market remained upbeat and near highs last seen in 2018 as traders grow increasingly confident that strong demand will improve further as the recovery progresses.

Traders are now looking forward to Thursday's meeting of OPEC and other major producers where they are to discuss whether or not to lift output.

"The demand recovery has been swift and there is pressure on OPEC+ to release more barrels, otherwise we might see $80 a barrel by next month," commented Howie Lee at Oversea-Chinese Banking Corp.

Key figures at 1345 GMT -

London - FTSE 100: UP 0.4 percent at 7,134.54 points

Frankfurt - DAX 30: DOWN 0.1 percent at 15,572.29

Paris - CAC 40: DOWN 0.2 percent at 6,615.25

EURO STOXX 50: DOWN 0.2 percent at 4,113.59

New York - Dow: UP 0.4 percent at 34,338.63

Tokyo - Nikkei 225: UP 0.7 percent at 29,066.18 (close)

Hong Kong - Hang Seng Index: UP 1.4 percent at 29,288.22 (close)

Shanghai - Composite: UP 1.2 percent at 3,607.56 (close)

Euro/dollar: UP at $1.1966 from $1.1932 at 2100 GMT

Pound/dollar: DOWN at $1.3912 from $1.3922

Euro/pound: UP at 86.01 pence from 85.70 pence

Dollar/yen: DOWN at 110.57 yen from 110.87 yen

Brent North Sea crude: UP 0.2 percent at $75.70 per barrel

West Texas Intermediate: UP 0.3 percent at $73.54 per barrel