Volkswacht Bodensee - London stocks hit new record peak on takeovers

The British capital's benchmark FTSE 100 index jumped to 8,136.52 points, notching up a record high for the fourth session running in a hectic week for merger and acquisition activity which also buoyed eurozone indices.

Cybersecurity firm Darktrace on Friday became the latest target, joining mining heavyweight Anglo American and music rights owner Hipgnosis Songs Fund on the takeover roster.

Investors were awaiting the release of the US Federal Reserve's preferred gauge of inflation, the personal consumption expenditures (PCE) index, hoping for an idea about its plans for interest rates ahead of next week's policy meeting.

- 'Yet more takeovers' -

Back in London, Anglo American on Friday rejected a blockbuster $38.8-billion takeover bid from Australian rival BHP, slamming it as "highly unattractive" and "opportunistic" and sending its shares down one day after soaring on initial news of the offer.

Darktrace meanwhile accepted a $5.3-billion takeover offer from US private equity firm Thoma Bravo, sending its share price shooting higher.

A battle also brewed to buy UK music rights owner Hipgnosis Songs Fund after US rival Concord increased its takeover offer, slightly beating a bid by Blackstone.

"What a fantastic week for the FTSE 100. We've had new record highs, yet more takeover action, and everyone is talking about UK stocks in a positive way," said Russ Mould, investment director at AJ Bell.

He added that first-quarter NatWest results also buoyed market sentiment, as the UK bank's pre-tax profit fell but beat expectations.

Added to the mix, forecast-topping earnings from Microsoft and Alphabet helped soothe investor worries that a tech-fuelled global markets rally may have been overdone.

In Asia, major equity markets rose, while the yen hit a fresh 34-year low after the Bank of Japan stood pat on interest rates.

However, the mood was clouded by fresh worries about the economic outlook after worse-than-expected US data combined with a forecast-topping print on core inflation that fanned speculation the country could top into stagflation.

Asia has, however, enjoyed a largely upbeat week on the back of a healthy earnings season, which partially offset fading hopes for Fed rate cuts.

The rally has been helped by blockbuster reports from heavyweights Microsoft and Alphabet, which topped estimates, while the latter also announced its first dividend. Social media company Snap also provided a bullish revenue projection.

All three soared in after-hours trade, helping push up US futures.

Investors were keeping a close eye on Tokyo after the yen sank further after the BoJ held interest rates after raising them for the first time in 17 years last month.

The unit hit 156.82 to the dollar on Friday, fuelling fresh speculation of an intervention after several officials lined up in recent weeks to warn they were ready to step in to support the unit.

- Key figures around 1030 GMT -

London - FTSE 100: UP 0.3 percent at 8,105.13 points

Paris - CAC 40: UP 0.2 percent at 8,030.32

Frankfurt - DAX: UP 0.7 percent at 18,048.76

EURO STOXX 50: UP 0.7 percent at 4,971.71

Tokyo - Nikkei 225: UP 0.8 percent at 37,934.76 (close)

Hong Kong - Hang Seng Index: UP 2.1 percent at 17,651.15 (close)

Shanghai - Composite: UP 1.2 percent at 3,088.64 (close)

New York - Dow: DOWN 1.0 percent at 38,085.80 (close)

Dollar/yen: DOWN at 156.60 yen from 155.65 yen on Thursday

Euro/dollar: UP at $1.0733 from $1.0730

Pound/dollar: DOWN at $1.2512 from $1.2514

Euro/pound: UP at 85.78 pence from 85.74 pence

Brent North Sea Crude: UP 0.4 percent at $89.33 per barrel

West Texas Intermediate: UP 0.4 percent at $83.93 per barrel

burs-rfj/lth

T.Ziegler--VB