Volkswacht Bodensee - Global stock markets stage pre-weekend rally

Wall Street had leapt Thursday after the US Commerce Department reported a larger-than-expected 0.8-percent decline in retail sales for January.

That renewed investor hope of an early interest rate cut from the US Federal Reserve, sending markets shooting higher.

"The weakness of yesterday's US retail sales release have given market doves a new lease of life and allowed them to refocus on the likelihood of an early Fed rate cut," Rabobank analyst Jane Foley told AFP.

"Risky assets are higher as a result," she added.

London equities also jumped as investors drew comfort from a contrasting January rebound in UK retail sales, one day after gloomy news that Britain has entered recession.

UK retail sales volumes surged 3.4 percent in January, the fastest increase in almost three years, after sliding 3.3 percent in December, official data showed.

Sentiment was buoyed also by a jump in annual net profit at NatWest, which sent the UK bank's share price up almost six percent.

Elsewhere, world oil prices slid after the Paris-based International Energy Agency warned of slowing global demand growth.

US and European stocks had rallied Thursday, with the broad-based S&P 500 up 0.6 percent to finish at an all-time high, along with Paris and Frankfurt.

London has marched higher despite official data showing Thursday the UK entered recession at the end of last year, as high inflation prolonged a cost-of-living crisis.

Japan also entered recession at the back end of 2023, according to data released Thursday, with the Asian nation overtaken by Germany as the world's third-biggest economy.

In foreign exchange activity Friday, the dollar wavered as dealers awaited US producer prices data in the United States for the latest steer on inflation.

Figures released on Tuesday showing the US consumer price index slowed less than expected in January dealt a blow to hopes of an early interest rate cut by the Fed and had sent Asian indices mostly lower.

But investors returned to buying on expectations borrowing costs will be reduced later this year.

The producer price index "will be closely watched by markets and should drive the near-term direction for the equity and bond markets", said Larry Tentarelli, chief technical strategist at Blue Chip Daily Trend Report.

- Key figures around 1115 GMT -

London - FTSE 100: UP 1.0 percent at 7,671.23 points

Paris - CAC 40: UP 0.7 percent at 7,798.44

Frankfurt - DAX: UP 0.9 percent at 17,193.24

EURO STOXX 50: UP 0.8 percent at 4,780.22

Tokyo - Nikkei 225: UP 0.9 percent at 38,487.24 (close)

Hong Kong - Hang Seng Index: UP 2.5 percent at 16,339.96 (close)

Shanghai - Composite: Closed for holiday

New York - Dow: UP 0.9 percent at 38,773.12 (close)

Euro/dollar: DOWN at $1.0769 from $1.0772 on Thursday

Dollar/yen: UP at 150.28 yen from 149.93 yen

Pound/dollar: DOWN at $1.2588 from $1.2600

Euro/pound: UP at 85.51 pence from 85.49 pence

Brent North Sea Crude: DOWN 1.0 percent at $82.03 per barrel

West Texas Intermediate: DOWN 0.9 percent at $77.34 per barrel

T.Germann--VB