(MENAFN- AFP) European equities steadied Friday after the previous day's sharp sell-off that was sparked by sluggish first-quarter eurozone growth.
London's FTSE 100 index of top companies climbed 0.26 percent to close at 6,855.81 points and the CAC 40 in Paris added 0.26 percent to 4,456.28 points, while Frankfurt shed 0.28 percent to 9,629.10 points.
Milan rebounded 1.12 percent after having dropped 3.6 on Thursday.
"It's been a fairly quiet low key session in Europe today after yesterday's sharp losses with investors reluctant to take on too much risk either way ahead of the weekend," said Michael Hewson, chief market analyst at CMC Markets UK.
"Italian markets have gravitated higher after yesterday's sharp losses while Europe's core markets have struggled to make any sort of headway, one way or the other."
Greece's stock market fell 3.15 percent on Friday to hit its lowest point since October, having shed nearly 9 percent of its value this week amid a return of concerns about the economy and political situation.
- Eurozone 'facing deep challenges' -
European stocks were mauled on Thursday, with both the Paris and Frankfurt indices losing about one percent after data showed economic growth across the 18-nation eurozone had expanded by an anaemic 0.2 percent in January-March, half the 0.4 percent that had been forecast.
Data agency Eurostat also confirmed on Thursday that eurozone inflation rose to 0.7 percent in April, up from the 0.5 percent reported in March but still well off the European Central Bank's 2.0-percent target.
"Low inflation in April and weak GDP growth in the eurozone ... highlighted once again the deep challenges faced by the single currency area," said CurrenciesDirect dealer Davide Ugolini.
He added: "With price levels clearly stuck near deflationary levels the ECB is now likely to act in June and currency markets are beginning to price in this easing."
The euro tumbled Thursday to $1.3648, the lowest level since February 27, as investors priced in a June interest rate cut from the European Central Bank.
On Friday it steadied, trading at 1.3707 in late European trade, from $1.3711 late in New York on Thursday.
The euro slid on Friday to 81.46 pence from 81.65 pence on Thursday, while the British pound rose to $1.6826 from $1.6790.
The price of gold declined to $1,291.50 per ounce on the London Bullion Market from $1,299.
- Ukraine pressures stocks -
Investors also tracked the latest news from crisis-hit Ukraine ahead of the weekend.
Analyst Ishaq Siddiqi at trading firm ETX Capital said "upside momentum is being pressured by the latest developments in Ukraine".
He said markets were unnerved by reports that Ukrainian troops have tightened their grip on several eastern towns held by Russian separatists.
In France, shares in Bouygues and Orange gained on rumours of a tie-up that would result in the number of mobile operators dropping from four to three.
Bouygues shares gained 4.4 percent to 33.08 euros and Orange gained 1.5 percent to 12.46 euros.
- India shares strike record -
In Asia, a recent pick-up in equities took a knock after the eurozone growth data fuelled concerns about the strength of the region's recovery.
Tokyo fell 1.41 percent also on the back of a stronger yen, and Sydney dipped 0.58 percent, but Seoul rose 0.16 percent. Both Hong Kong and Shanghai ended flat.
India's benchmark stock index soared over six percent to a record high Friday after right-wing opposition leader Narendra Modi scored a landslide election victory, and then pulled back on profit-taking.
Wall Street stocks trod water Friday following a mixed report on US housing starts as investors continued to demonstrate caution towards equities.
In midday trading the Dow Jones Industrial Average added 0.06 percent to 16,456.44 points.
The broad-based S&P 500 edged up 0.03 percent to 1,871.33, while the tech-rich Nasdaq Composite Index slid 0.16 percent to 4,062.92.
US shares sank on Thursday as analysts warned of a growing flight to bonds from riskier assets.
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