Il Nuovo Postiglione - Stock markets calmer as trade rally eases

Asian markets lost steam after enjoying one of their best weeks since US President Donald Trump's "Liberation Day" tariff bazooka last month caused indices to slump.

"European shares are largely holding onto yesterday's gains, which saw Germany's DAX reach a record high" at the close, said Derren Nathan, head of equity research at Hargreaves Lansdown.

London, Paris and Frankfurt were all higher Friday.

Luxury stocks were bolstered after Cartier-owner Richemont posted higher net profit and sales, driven by resilience in its jewelery business, despite the sector struggling with weak demand from China.

Pharmaceutical and energy stocks were up in London, as "investors were fishing for opportunities among areas that have recently been weak", said AJ Bell investment director Russ Mould.

"Pharma stocks have been volatile of late amid fears of tariffs on the sector, while a pullback in oil prices dragged down the big oil producers yesterday," he added.

Oil prices steadied after tumbling Thursday on the possibility a breakthrough in Iran nuclear talks, fuelled by Trump saying progress had been made on a deal.

The dollar edged down against the euro and the yen on raised expectations that the Federal Reserve would still cut interest rates this year following mixed inflation data.

Investors are now awaiting signals from the US president on trade talks, as countries seek deals to avoid his steep levies.

However, analysts warn that initial optimism over the US-China truce -- which saw them slash tit-for-tat tariffs for 90 days to allow for talks -- has faded, given that levies are still elevated and pose a threat to economic growth.

"Even if more trade deals are announced, it is still the case that tariffs on goods entering the US will be much higher than anyone dared to contemplate," said IG chief market analyst Chris Beauchamp.

In Asia, markets were more negative, with Shanghai and Hong Kong falling.

Japan's economy suffered its first quarterly contraction for a year in January-March, which analysts said did not help market sentiment.

The Nikkei index closed flat.

E-commerce titan Alibaba shed over six percent in Hong Kong after reporting a disappointing rise in first-quarter revenue amid sluggish consumer spending in China.

Other tech firms were also lower, with e-commerce rival JD.com down along with Tencent and Meituan.

- Key figures at around 1100 GMT -

London - FTSE 100: UP 0.5 percent at 8,675.25 points

Paris - CAC 40: UP 0.7 percent at 7,904.83

Frankfurt - DAX: UP 0.7 percent at 23,851.57

Tokyo - Nikkei 225: FLAT at 37,753.72 (close)

Hong Kong - Hang Seng Index: DOWN 0.5 percent at 23,345.05 (close)

Shanghai - Composite: DOWN 0.4 percent at 3,367.46 (close)

New York - Dow: UP 0.7 percent at 42,322.75 (close)

Euro/dollar: UP at $1.1203 from $1.1185 on Thursday

Pound/dollar: DOWN at $1.3296 from $1.3304

Dollar/yen: DOWN at 145.49 yen from 145.65 yen

Euro/pound: UP at 84.25 from 84.07 pence

Brent North Sea Crude: UP 0.5 percent at $64.86 per barrel

West Texas Intermediate: UP 0.5 percent at $61.93 per barrel

R.Agosti--INP