(MENAFN- AFP) European stock markets fell on Friday, with losses limited as prospects eased of a US interest rate hike in the near future, analysts said.
The euro dipped, keeping it on course to reach parity with the dollar, one day after striking a 12-year low against the greenback.
"As we finish off a turbulent week for equities, hopes that a US rate hike may be postponed is propping up the market," said Mike McCudden, head of derivatives at stockbroker Interactive Investor.
"However, we may be in for a lacklustre few days as investors await the next Fed meeting for more clues. Chances are, the strong labour report last week will keep a June rate hike on track and recent gains may be tempered."
The euro stood at $1.0587 compared with $1.0636 late on Thursday in New York. The single currency Thursday had struck a 12-year low at $1.0495.
The euro, which has shed about 13 percent of its value this year, has been losing further ground in recent days as the European Central Bank has embarked on a policy of so-called quantitative easing.
The QE stimulus plan will see it buy 1.14 trillion euros worth of bonds over the next 18 months. The aim is to pump liquidity into the system so as to ward off deflation and spur growth in the single currency area.
Some analysts predict the eurozone unit could reach parity against the dollar, amid a growing policy divergence between the ECB and the US Federal Reserve.
The US central bank had ended its own QE programme in October.
In European stock market trading Friday, London's benchmark FTSE 100 index fell 0.17 percent to 6,749.6 points in morning deals.
The CAC 40 in Paris lost 0.20 percent to 4,977.38 points, and Frankfurt's DAX 30 index slipped 0.30 percent to stand at 11,764.34 compared with Thursday's close.
Asian markets mostly rose Friday following a surge on Wall Street after unexpectedly weak US data tempered talk of an interest rate hike by summer.
US markets, which by Wednesday had lost all their 2015 gains, rallied on Thursday after data showed US retail sales fell for the third straight month in February as severe winter weather gripped large parts of the country.
Retail and food services sales fell 0.6 percent from January, confounding forecasts of 0.4 percent growth.
"Yesterday's disappointing retail sales report from the US gave the market exactly what it needed overnight, an opportunity to take a breather, sit back and weigh up the situation," said Craig Erlam, senior market analyst at Oanda trading group.
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