(MENAFN- AFP) Europe's main stock markets closed mixed on Friday as investors' attention focused to an EU summit on relations with the ex-Soviet states and the Greek crisis as well as US inflation data.
In the euro area, Frankfurt's DAX 30 lost 0.42 percent to 11,815.01 points. and the CAC 40 in Paris dipped 0.07 percent to end the day at 5,142.89 points compared with Thursday's close.
But in London the benchmark FTSE 100 index rose 0.26 percent at 7,031.72 points, boosted by gains to share prices of heavyweight miners that rallied on Chinese stimulus hopes.
"Eurozone indices have struggled... weighed down by Greek debt concerns," said Kash Kamal, research analyst at Sucden Financial.
"The prospect of a potential conclusion (to debt talks) towards the end of May or early June, after what has been a drawn out and difficult period of negotiations saw the euro rally towards 1.1208 earlier today, however, with no concrete details regarding the revised terms of any deal these early gains were swiftly given back." Kamal said.
The euro dropped to $1.1029 from $1.1112 late in New York on Thursday.
Also the dollar edged higher as US core inflation came in higher than expected and thus raised chances of an interest rate rise.
The US Labor Department reported that consumer prices edged 0.1 percent higher in April as energy prices tumbled and food prices were flat, but excluding those elements core inflation came in at a higher than expected 0.3 percent.
While the US Federal Reserve is no longer seen as likely to raise its key interest rates in June, markets have been left uncertain over the exact timing of a hike.
A pick up in inflation would support raising rates, which would support the dollar.
In midday trading in New York, US stocks were lower as traders awaited a speech by Federal Reserve Chair Janet Yellen on the US economic outlook.
The Dow Jones Industrial Average was down 0.29 percent to 18,232.42 points.
The broad-based S&P 500 retreated from Thursday's record, falling 0.18 percent to 2,126.94, while the tech-rich Nasdaq Composite Index slipped 0.09 percent at 5,086.40.
Investors are hoping that Yellen's speech will deliver insights into when the central bank will raise near-zero interest rates, now generally expected in September at the earliest.
- Merkel downbeat, Greece confident -
While the EU summit in Riga was focused on developing the European Union's relationship with the former Soviet states of Armenia, Azerbaijan, Belarus, Georgia, Moldova and Ukraine, the Greece crisis nevertheless remained in the spotlight.
German Chancellor Angela Merkel dampened hopes for an end to the marathon talks with Greece on a new loan deal, saying more work was needed as cash-strapped Athens said an agreement was possible by the end of the month.
And Prime Minister David Cameron used the summit to launch his bid to recast Britain's relationship with the EU, warning of "ups and downs" before a straight in-or-out referendum on EU membership by the end of 2017.
The German economy, Europe's biggest, meanwhile appears to have reached cruising altitude as business confidence maintained its current high level in May, the Ifo economic institute said Friday.
Ifo's closely watched business climate index eased slightly to 108.5 points this month from 108.6 points in April, the think tank said in a statement.
It was the first time since September that the index has fallen, but analysts had been expecting a slightly bigger drop.
In Asia, Chinese shares were the stand-out performers on hopes that Beijing will announce fresh monetary easing measures after more disappointing economic indicators.
Tokyo reversed a morning sell-off to end 0.30 percent higher to 20,264.41 -- its best finish since April 2000, while Shanghai surged 2.83 percent, Hong Kong added 1.70 percent, and Seoul closed up 1.10 percent.
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