European stocks run out of steam despite Asia gains

LONDON: European stock markets slipped Friday as investors took a breather in the absence of fresh news on this week's trade talks between Beijing and Washington.

Frankfurt and Paris indices each declined 0.3 percent in midday trade.

London was down 0.1 percent after official data showed that UK economic growth slowed in the three months to November.

Asian markets were mostly higher earlier.

Britain's parliament votes next Tuesday on Prime Minister Theresa May's unpopular Brexit deal and with lawmakers expected to reject it, institutions will work through the night to cover any potential fallout.

This week meanwhile, investors have been riding a wave of optimism on signs that China and the United States could eventually reach a trade deal -- but there has been no concrete news yet.

Markets are now awaiting developments in the trade spat after three days of negotiations that both sides indicated had been productive.

"Traders have yet to hear any further details about the US-China trade talks," said CMC Markets UK analyst David Madden.

"European equity markets have enjoyed a good run in recent weeks, and now they appear to be taking a breather."

Sentiment was also boosted this week after Federal Reserve chief Jerome Powell indicated the US central bank will likely slow the pace of interest rate hikes.

The upbeat tone that characterised most of this week helped Asian markets to fresh gains on Friday.

In commodities, crude oil was higher to show gains of about 20 percent from 17-month lows struck at the end of December, while high-yielding currencies were supported by a demand for riskier assets.

- Wall Street advances -

Overnight, Wall Street  brushed off disappointing retail figures to focus on the prospect that interest rates will not rise as much as previously feared.

Fed minutes Wednesday showed policymakers are happy to hold off any more rate hikes as they assess the state of the economy, backing up dovish comments last week by Powell.

There was a slight wobble in New York after Powell on Thursday suggested the central's bank's securities holdings should be "substantially smaller" -- a sell-off by the Fed of such assets would likely lift money market rates.

But the general mood remained upbeat as a number of other top Fed officials indicated they were happy to see a break in hikes.

- Key figures around 1200 GMT -

London - FTSE 100: DOWN 0.1 percent at 6,939.06 points

Frankfurt - DAX 30: DOWN 0.3 percent at 10,891.30

Paris - CAC 40: DOWN 0.3 percent at 4,789.09

EURO STOXX 50: DOWN 0.1 percent at 3,073.66

Tokyo - Nikkei 225: UP 1.0 percent at 20,359.70 (close)

Hong Kong - Hang Seng: UP 0.6 percent at 26,667.27 (close)

Shanghai - Composite: UP 0.7 percent at 2,553.83 (close)

New York - Dow: UP 0.5 percent at 24,001.92 (close Thursday)

Euro/dollar: UP at $1.1530 from $1.1500

Dollar/yen: DOWN at 108.33 yen from 108.43 at 2200 GMT

Pound/dollar: UP at $1.2752 from $1.2747

Oil - Brent Crude: UP 22 cents at $61.90 per barrel

Oil - West Texas Intermediate: UP 33 cents at $52.92