Summary The European single currency eased to 82.08 British pence from 82.10 pence.
LONDON (AFP) - Europe s main equity markets diverged on Friday, while London won a lift from earnings news as investors awaited key US non-farm payrolls data.
In early afternoon deals, London s FTSE 100 index of top companies added 0.14 percent to stand at 6,818.34 points compared with Thursday s close, supported by rebounding profits at state-rescued Royal Bank of Scotland.
The French and German stock markets fell in subdued deals after holiday closures in most of Europe on Thursday. The dollar rose against the euro and British pound.
Frankfurt s DAX 30 slipped 0.04 percent to 9,599.20 points and in Paris the CAC 40 shed 0.50 percent to 4,464.95 compared with Wednesday s closing levels.
Spain s interest rate for borrowing 10-year funds fell below 3.0 percent on Friday for the first time since 2005, in a further sign that the eurozone debt crisis is fading.
On the secondary market, where debt already issued is traded, the interest rate or yield indicated by the rising value of the bonds fell to 2.996 percent briefly during morning trading, but then rose to 3.0 percent.
Investors are eagerly awaiting Friday s non-farm payrolls (NFP) figures for April, with tentative expectations that they will show the economy is rebounding after the near-stall in the first quarter.
"Where equities move as we head in to the weekend break will be firmly underpinned by the strength of the US jobs market recovery," said Mike McCudden, head of derivatives at stockbroker Interactive Investor.
"Expectations for the NFP number are highly optimistic so expect investors to tread with caution on the increased likelihood of being wholly underwhelmed."
London s top gainer was Royal Bank of Scotland, which revealed that net profits tripled to 1.2 billion ($2.0 billion, 1.5 billion euros) in the first quarter, buoyed by lower costs and falling impairments.
In reaction, RBS saw its share price spike 9.23 percent to 334.9 pence.
Pre-tax profits doubled to 1.64 billion from 826 million a year earlier, but the troubled bank warned that it still faced "plenty" of issues to deal with.
RBS, based in Edinburgh, Scotland, remains 81-percent state-owned after it was rescued with 45.5 billion of taxpayers cash during the 2008 global financial crisis.
Investor focus was also on the pharmaceuticals sector after British drugs giant AstraZeneca on Friday rejected a sweetened $106-billion takeover bid from US rival Pfizer.
The rejection came hours after Pfizer had lifted its informal cash and shares bid to the equivalent of 76 billion euros, as it seeks to strengthen its research in cancer and slash its tax bill, offering 50 ($84, 61 euros) per AstraZeneca share.
However, AstraZeneca shares fell in London afternoon deals, dropping 0.35 percent to 47.98.
- Asia in mixed trading -
Asia s markets traded mixed Friday as dealers returned from the May Day break to healthy manufacturing data from the United States and China as well as an upbeat assessment of the US economy.
Tokyo stocks slid 0.19 percent and Seoul slipped 0.12 percent, while Sydney added 0.17 percent and Hong Kong rose 0.57 percent. Shanghai was shut for a public holiday.
The US Federal Reserve on Wednesday said the world s number one economy was picking up after a severe winter that saw growth slow to just 0.1 percent in the first quarter of the year.
The central bank said that with the cold weather now behind it, the country would likely enjoy a recovery, adding that it would further reduce its stimulus programme by $10 billion a month to $45 billion.
In foreign exchange trading, the euro fell to $1.3860 from $1.3867 late in New York on Thursday.
The European single currency eased to 82.08 British pence from 82.10 pence, while the pound declined to $1.6884 from $1.6890 on Thursday.
The price of gold rose to $1,284.23 an ounce on the London Bullion Market, from $1,278.50 on Thursday.
