Volkswacht Bodensee - Stocks, dollar diverge with focus on rates

Wall Street reached fresh record highs Thursday after US inflation and jobless claims data cemented expectations that the Federal Reserve will trim borrowing costs.

"Stock markets (are) at record highs on hopes for falling interest rates," noted Derren Nathan, head of equity research at stockbroker Hargreaves Lansdown.

There were fresh records this week also for the Tokyo and Seoul stock markets, while London on Friday neared a new all-time high.

London's benchmark FTSE 100 was a rare gainer among European stock markets as the British pound weakened on data showing the UK economy stalled in July.

"While the data underscores the fragile state of the UK economy, sterling weakness and continued strength in energy and financial names are helping the index outperform broader European peers," said Joshua Mahony, chief market analyst at traders Scope Markets.

Hong Kong led the way among Asia's top stock markets on Friday, closing up more than one percent thanks to a surge of more than five percent in the share price of Alibaba.

The e-commerce titan's New York stock had spiked eight percent Thursday, helped by its latest moves in the artificial intelligence sector.

This week saw also more record highs for the price of gold, viewed as a safe haven investment, following escalating tensions over the Israel-Gaza and Russia-Ukraine conflicts.

Russia's central bank on Friday trimmed its key interest rate to 17 percent as the country risks an economic slowdown.

The Bank of England is next week widely expected to keep its key rate on hold as elevated UK inflation offsets stagnant growth.

The European Central Bank on Thursday held interest rates steady with eurozone inflation under control and trade tensions having eased, even as France's political crisis presents policymakers with a fresh challenge.

- Key figures at around 1045 GMT -

London - FTSE 100: UP 0.3 percent at 9,328.87 points

Paris - CAC 40: DOWN 0.5 percent at 7,788.08

Frankfurt - DAX: DOWN 0.2 percent at 23,648.27

Tokyo - Nikkei 225: UP 0.9 percent at 44,768.12 (close)

Hong Kong - Hang Seng Index: UP 1.2 percent at 26,388.16 (close)

Shanghai - Composite: DOWN 0.1 percent at 3,870.60 (close)

New York - Dow: UP 1.4 percent at 46,108.00 points (close)

Euro/dollar: UP at $1.1740 from $1.1732 on Thursday

Pound/dollar: DOWN at $1.3553 from $1.3580

Dollar/yen: UP at 147.81 from 147.18 yen

Euro/pound: UP at 86.56 pence from 86.43 pence

Brent North Sea Crude: UP 0.8 percent at $66.90 per barrel

West Texas Intermediate: UP 0.7 percent at $62.78 per barrel

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L.Stucki--VB