Equity markets diverged Friday as traders fixed attention on inflation numbers from the eurozone and the United States for clues on the outlook for interest-rate cuts.

Paris and Frankfurt indices were slightly lower in midday deals after official data showed eurozone inflation rose faster than expected in May.

London was up while Asia's main equity markets closed mixed.

Analysts said the eurozone reading was unlikely to stop the European Central Bank from lowering rates on June 6 -- but what occurs beyond was less clear.

"From a market perspective, the euro has found itself back in favour, with the diminishing hopes of three 2024 cuts (by the ECB) bringing a reversal of the weakness seen for much of this week," Joshua Mahony, chief market analyst at Scope Markets, said following the inflation data.

Attention later in the day turns to the US personal consumption expenditures (PCE) index and what this measure of inflation could mean for the Federal Reserve's future interest-rate policy.

"Today will see a big focus on the Fed's favoured core PCE inflation metric, with markets likely to take on a somewhat subdued tone until we get greater clarity on this key data point," Mahony added.

Bets on the number of Fed reductions, if any, this year have been whittled down owing to a string of outsized US data and warnings from decision-makers that they want to see strong evidence prices are under control before moving.

Most have called for American borrowing costs to be kept elevated for some time, while some have even advocated for another hike.

There was little reaction to data Friday showing China's factory activity contracted in May for the first time in three months, denting fragile optimism about the recovery in the world's second biggest economy behind the US.

Oil prices down before OPEC

Oil prices retreated Friday before a weekend meeting of the OPEC+ cartel that is likely to maintain its level of output cuts amid a fragile global economy.

Analysts told AFP they expected the status quo to be upheld at the online gathering Sunday even if larger cuts could boost crude prices and income for the grouping's members, which include Saudi Arabia and Russia.

Key figures around 1045 GMT 

London - FTSE 100: UP 0.4 percent at 8,264.16 points

Paris - CAC 40: FLAT at 7,978.02

Frankfurt - DAX: DOWN 0.1 percent at 18,482.52

EURO STOXX 50: UP 0.1 percent at 4,987.08

Tokyo - Nikkei 225: UP 0.2 percent at 38,119.96 (close)

Hong Kong - Hang Seng Index: DOWN 0.8 percent at 18,079.61 (close)

Shanghai - Composite: DOWN 0.2 percent at 3,086.81 (close)

New York - Dow: DOWN 0.9 percent at 38,111.48 (close)

Euro/dollar: UP at $1.0849 from $1.0834 on Thursday

Pound/dollar: DOWN at $1.2720 from $1.2733

Dollar/yen: UP at 157.26 from 156.82 yen

Euro/pound: UP at 85.31 from 85.07 pence

West Texas Intermediate: DOWN 0.1 at $77.86 per barrel

Brent North Sea Crude: DOWN 0.4 percent at $81.51 per barrel