Volkswacht Bodensee - European stocks rise before US jobs report

Oil priced have seen volatile movements this week on wavering optimism over whether a deal will be reached to reopen the Strait of Hormuz.

London, Paris and Frankfurt stock markets were all higher around midday, following a mixed session in Asia.

Attention turns to Friday's release of US jobs data ahead of consumer price figures next week -- both of which could be crucial in the Federal Reserve's decision-making on interest rates.

"If we get a stronger than expected payrolls reading and elevated wage pressure, then this could push up expectations for a September rate hike," said Kathleen Brooks, research director at XTB.

She added that it could "reinforce the 'higher for longer' narrative on interest rates, and break the recent rally in US stocks".

Stocks enjoyed a healthy run-up at the start of the week on well-received company earnings and as US President Donald Trump called off strikes on Iran and said an agreement was close, even though Tehran denied talks took place.

At the same time Iran said that it was close to a pact with Oman on managing Strait of Hormuz, which has been choked off for most of the Middle East war, but that the United States would need to end its own naval blockade of Iranian ports.

Oil prices eased Friday after rising on reports that the potential agreement bars US and Israeli vessels from entering the Strait.

That dampened hopes for a full reopening of the waterway -- through which about a fifth of global oil passes -- and revived fears of a new spike in inflation that could lead to higher interest rates.

Equity markets in Asia diverged at the end of the week, with Seoul again hit by concerns over the AI boom, while Tokyo, Taipei, Bangkok and Mumbai were also lower.

Hong Kong, Shanghai, Singapore and Jakarta advanced.

Official data Friday showed that Chinese exports and imports soared in July, as the manufacturing powerhouse benefits from a global AI boom lifting overseas demand for tech products.

There was a pullback Thursday on Wall Street, where the Dow came off three days of record highs.

- Key figures around 1100 GMT -

London - FTSE 100: UP 0.7 percent at 10,947.40 points

Paris - CAC 40: UP 0.5 percent at 8,741.22

Frankfurt - DAX: UP 0.8 percent at 26,360.31

Tokyo - Nikkei 225: DOWN 0.1 percent at 65,606.71 (close)

Hong Kong - Hang Seng Index: UP 0.5 percent at 25,668.03 (close)

Shanghai - Composite: UP 1.0 percent at 3,940.04 (close)

New York - DOW: DOWN 0.9 percent at 53,885.10 (close)

Euro/dollar: UP at $1.1528 from $1.1524 on Thursday

Pound/dollar: DOWN at $1.3437 from $1.3456

Dollar/yen: DOWN at 158.32 yen from 158.40 yen

Euro/pound: UP at 85.79 pence at 85.65 pence

Brent North Sea Crude: DOWN 0.8 percent at $81.87 per barrel

West Texas Intermediate: DOWN 0.5 percent at $76.92 per barrel

M.Schneider--VB