Portugal Colonial - European stocks rebound, oil prices ease after US-Iran volatility

It followed a weak session in Asia, where several markets remained closed for the Lunar New Year break.

Crude prices pulled back after climbing to six-month highs this week on worries that nuclear talks between the United States and oil-rich Iran might not avert a new conflict that could threaten supplies.

"Threats of military action against Iran from the Trump administration... created some jitters in the market yesterday -- with selling in US stocks being matched in most Asian markets," said AJ Bell investment director Russ Mould.

Trump warned Thursday that Tehran should make a "meaningful deal" in negotiations with Washington in the next 10 days or else "bad things happen".

Iran warned that US bases, facilities and assets would be "legitimate targets" if its followed through on its military threats and attacks.

The threats come days after the United States and Iran held a second round of talks in Geneva as Washington looks to prevent the country from getting a nuclear bomb, which Tehran says it is not pursuing.

"At its core, this looks like pressure and leverage rather than a prelude to invasion," said City Index market analyst Matt Simpson.

On stock markets, Hong Kong fell as it reopened from a three-day break, and Tokyo was also down.

London, Paris and Frankfurt all advanced in midday trading.

A closely watched survey on Friday showed that business activity in the eurozone accelerated in February, indicating that the region's economy is on more stable footing.

British firms also boosted output in February, according to the purchasing managers' index published by S&P Global.

Traders are looking ahead to the release of US data later in the day that will provide a fresh snapshot of the world's biggest economy.

A slew of forecast-beating figures over the past days has lifted optimism about the outlook but tempered expectations for more interest rate cuts from the Federal Reserve.

Shares in Jakarta slipped after Trump and Indonesian President Prabowo Subianto reached a trade deal after months of wrangling.

The accord sets a 19 percent tariff on Indonesian goods entering the United States, below potential 32 percent levy the the Southeast Asian country had been threatened with.

Jakarta also agreed to $33 billion in purchases of US energy commodities, agricultural products and aviation-related goods, including Boeing aircraft.

- Key figures at around 1120 GMT -

London - FTSE 100: UP 0.3 percent at 10,694.40 points

Paris - CAC 40: UP 0.8 percent at 8,463.84

Frankfurt - DAX: UP 0.3 percent at 25,111.12

Tokyo - Nikkei 225: DOWN 1.1 percent at 56,825.70 (close)

Hong Kong - Hang Seng Index: DOWN 1.1 percent at 26,413.35 (close)

Shanghai - Composite: Closed for holiday

New York - Dow: DOWN 0.5 percent at 49,395.16 (close)

Euro/dollar: DOWN at $1.1766 from $1.1767 on Thursday

Pound/dollar: UP at $1.3474 from $1.3458

Euro/pound: DOWN at 87.34 pence from 87.43 pence

Dollar/yen: UP at 155.23 yen from 155.07 yen

Brent North Sea Crude: DOWN 0.5 percent at $71.34 per barrel

West Texas Intermediate: DOWN 0.5 percent at $66.06 per barrel

B.Godinho--PC