London's benchmark FTSE 100 index fell around 0.5 percent in afternoon deals after official data indicated that the UK economy was likely at the start of a prolonged recession.
Frankfurt and Paris managed to advance around half-a-percent by mid-afternoon trading, but gains were capped as the EU warned the eurozone was set to fall into recession this winter. Asian equities closed sharply higher after a bumper session on Wall Street Thursday, as lower US inflation dimmed expectations of more aggressive interest-rate hikes from the Federal Reserve.Shanghai won 1.7 percent and oil prices rose strongly as China relaxed some hardline Covid-19 restrictions.In the US, annual inflation came in at a lower-than-expected 7.7 percent in October, down from 8.2 percent in September.
The dollar slumped against rival currencies following the data release as traders bet that upcoming US interest rate hikes will be smaller than in recent months and amid expectations of less stringent Chinese Covid curbs.