Summary Strong corporate results, including from Amazon and ExxonMobil, kept a floor under the market
LONDON (AFP) - Global stock markets went soft on Friday, weighed down by disappointing American and British growth figures, with eurozone inflation data offering a bright spot on the macro-economic front.
Wall Street was a touch weaker after data showed that the US economy expanded by just 0.7 percent in the first quarter, well below analysts expectations and a three-year low.
The mood in New York was further soured by political concerns as the US government tries to avoid a shutdown, said analysts at Charles Schwab, also pointing to tension over North Korea.
The US House of Representatives on Friday passed a one-week stopgap funding bill, which will now go to the Senate.
But strong corporate results, including from Amazon and ExxonMobil, kept a floor under the market.
"Markets were left a little unsure which way to turn after an upturn in corporate profits was met with data showing decelerating economic growth," said Jasper Lawler, an analyst with London Capital Group.
London s benchmark FTSE 100 index closed lower after data showed a slackening in Britain s crucial service sector had slowed GDP growth to 0.3 percent -- an early sign that the country s post-Brexit vote boom may be coming to an end.
"With high inflation and slumping consumer demand, there is much to worry about with the UK economy at present," said David Lamb, head of dealing at FEXCO Corporate Payments.
Banking giant Barclays weighed down on the index following first-quarter results, which showed its investment banking operation "fell short of expectations due to weaker than expected fixed income trading", according to Helal Miah at The Share Centre.
Mixed eurozone data
Prospects for British exporters were also hit by the surging pound, which climbed to its highest since late September on Friday, approaching $1.30.
Traders are betting on a thumping victory for Theresa May in the upcoming general election, which they believe will help her in Brexit negotiations.
France also posted disappointing GDP growth of 0.3 percent, but Paris s CAC index still held on to most gains from its post-election bounce as polls showed centrist Emmanuel Macron on course for victory.
The first-round vote had been "a massive relief to markets, which are assuming that Macron is going to win", William Hamlyn, analyst with Manulife Asset Management, told AFP.
Germany s DAX took comfort from Eurostat announcing that eurozone inflation rose to 1.9 percent in April, up from 1.5 percent in March.
"Any inflation that s marginally above expectation would help Europe and the reflation story," said Hamlyn.
Despite the jump, the European Central Bank has reasserted its commitment to a loose monetary policy.
North Korea tension
Asian shares earlier fell as doubts deepened over US President Donald Trump s agenda.
"The market s distrust in his ability to run the government is only increasing," Mizuho Bank said in a commentary.
"He has not been able to deliver most of his campaign promises. The market has had high hopes for his tax reforms. But the proposal has faced strong criticism from the conservative forces in his party that are demanding more fiscal discipline."
Tensions over North Korea also continue to dent confidence, after a series of missile launches by Pyongyang and warnings from the Trump administration that military action was an "option on the table".
Trump added to concerns by saying there was "a chance" of "a major, major conflict" with the North.
Key figures at 1540 GMT
New York - Dow: DOWN 0.2 percent at 20,945.52 points
London - FTSE 100: DOWN 0.5 percent at 7,203.94 (close)
Frankfurt - DAX 30: DOWN 0.1 percent at 12,438.01 (close)
Paris - CAC 40: DOWN 0.1 percent at 5,267.33 (close)
EURO STOXX 50: DOWN 0.1 percent at 3,559.59
Tokyo - Nikkei 225: DOWN 0.3 percent at 19,196.74 (close)
Hong Kong - Hang Seng: DOWN 0.3 percent at 24,615.13 (close)
Shanghai - Composite: UP 0.1 percent at 3,154.66 (close)
Euro/dollar: UP at $1.0895 from $1.0872 at 2100 GMT
Pound/dollar: UP at $1.2940 from $1.2902
Dollar/yen: UP at 111.42 yen from 111.24 yen
Oil - Brent North Sea: UP 24 cents at $52.06 per barrel
Oil - West Texas Intermediate: UP 20 cents at $49.17
