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Global stocks mixed after torrid week

Global stock markets finished mixed on Friday at the end of a turbulent week driven by worries over China's slowing growth with some relief coming from data showing the strength of the US economy. Global equities were hammered on Black Monday as risk-averse investors dumped shares on spreading panic that the flagging Chinese economy -- the world's second largest -- could spark a new worldwide recession. However, sentiment was soothed by Tuesday's interest rate cut from the People's Bank of China (PBoC) and by Thursday's bright gross domestic product (GDP) data in the United States. "After a hectic rollercoaster of a week across financial markets... the moves by the PBoC and the better-than-expected US GDP have revived risk-taking to a degree," said London Capital Group analyst Brenda Kelly. In Europe, London's benchmark FTSE 100 index closed up 0.90 percent and the CAC 40 rose 0.36 percent. But Frankfurt's DAX 30 index slipped 0.17 as investors remained cautious after a yo-yo week of trading. In Asia, Tokyo led the gains on Friday, with Shanghai and several other markets in tow after the US reported a surprisingly strong new estimate of economic growth at 3.7 percent for the second quarter. Hong Kong, however, dropped 1.04 percent. IG Markets analyst Angus Nicholson cautioned that "there still does not seem to be the macro foundations for indices to fully recover from their corrections, as concerns over China and uncertainty over Fed rate hikes continue to linger." - No Fed decision yet - Federal Reserve Vice Chair Stanley Fischer said Friday that no decision had been made yet on raising interest rates at the US central bank's September 16-17 policy meeting. "The change in the circumstances which began with the Chinese devaluation is relatively new and we are still watching how it unfolds. So I wouldn't want to go ahead and decide right now," Fischer told CNBC television in an interview. Wall Street equities were also trading mixed around midday Friday, with the Dow Jones Industrial Average 0.40 percent lower, the broad-based S&P 500 down 0.13 percent, while the tech-rich Nasdaq Composite Index was up a slight 0.03 percent. Thursday's data, which showed the world's biggest economy grew at an annual rate of 3.7 percent in the April-June quarter, buoyed markets that have been worried over the faltering Chinese economy, which accounts for some 13 percent of global output. Markets across the world saw recoveries, with the S&P 500 surging to its second straight gain on Wall Street Thursday. In Asia on Friday, Tokyo jumped 3.03 percent higher and Shanghai gained 4.82 percent. Seoul, Sydney, and several other Asian markets also rose. - China mitigating concerns? - Beijing has sought to mitigate global concerns in recent days by taking a series of measures, from boosting the amount its massive state pension fund can invest in stocks, to cutting interest rates and slashing reserve levels for banks. The measures are not only aimed at increasing cash flow in China, but also at reviving confidence that Beijing can steer the economy away from a hard landing and keep global growth on course. Markets took their lead, however, from the US growth report, which seemed to confirm the economy has not yet been undermined much by China's downturn. It added to other strong recent data on consumer confidence and durable goods orders. Chris Green, an Auckland-based strategist at First NZ Capital Ltd., said the figures showed the US economy was in better shape. "It gave credence to the story that the US economy could be building momentum," he said. "We seem to have gained some sort of stability and people are focusing more on the underlying strength of the US economy." - Central bank focus - The latest data boosted the dollar, though caution crept in on Friday. In London foreign exchange deals on Friday, the euro slipped to $1.1170 from $1.1239 late on Thursday. After collapsing on Monday to levels last seen during the 2008 global financial crisis, oil prices rallied by the end of the week with Brent North Sea crude for October delivery at $47.20 a barrel and West Texas Intermediate (WTI) gaining to $42.03 a barrel. Eyes now turn to a central banking symposium that the US Federal Reserve is hosting in Jackson Hole, Wyoming, which lasts until Saturday. Investors hope for an indication as to whether the US central bank believes the global turmoil is severe enough to delay a long-expected hike in interest rates. On Wednesday, New York Federal Reserve head William Dudley said the Chinese turmoil had made the arguments for a rate rise in September "less compelling." -- Bloomberg News contributed to this report --