Portugal Colonial - Stocks mixed before US jobs data, oil dips

Oil prices eased after surging this week on a fresh escalation of the US-Iran war, though still above $90 a barrel.

American diesel prices meanwhile reached a record high at $5.85 a gallon -- clouding the outlook on inflation pressures in the world's biggest economy.

Expectations that rising prices will force central banks worldwide to raise rates have sent government bond yields soaring, though they eased back on Friday.

"Constantly changing interest rate expectations have kept investors on their toes this week," said Dan Coatsworth, head of markets at AJ Bell.

"Having spent several days in the worry zone amid fears of growing inflationary pressures, markets have ended the week on a calmer note," he said.

Asian markets largely tracked a Wall Street rally on Thursday, after comments from two Federal Reserve officials cast doubt on an imminent rate hike.

One governing board member, Christopher Waller, said his vote at a policy meeting this month would be guided by inflation data, with a softer reading edging him towards holding rates.

"My decision on the appropriate stance of policy will be heavily influenced by what we learn about August inflation" coming out next week, Waller said.

Officials are trying to balance their desire to get inflation down while ensuring sustained economic growth.

That makes Friday's release of US non-farm payrolls for August a key indicator, with analysts tabling on around 55,000 new jobs after a surprise drop in July.

On the corporate front, shares in Volkswagen surged more than six percent after the German car giant said management and unions had agreed to cut a total of 100,000 jobs by the end of the decade.

Hit by US tariffs, patchy demand for electric cars and above all fierce competition in and from China, Europe's largest carmaker has been struggling for years.

The job cuts amount to about 15 percent of Volkswagen's global workforce.

- Key figures at around 1045 GMT -

London - FTSE 100: FLAT at 10,828.85 points

Paris - CAC 40: DOWN 0.2 percent at 8,273.57

Frankfurt - DAX: UP 0.3 percent at 26,077.72

Tokyo - Nikkei 225: UP 1.3 percent at 65,020.94 (close)

Hong Kong - Hang Seng Index: UP 1.7 percent at 25,650.87 (close)

Shanghai - Composite: DOWN 0.3 percent at 3,930.12 (close)

New York - Dow: UP 1.2 percent at 53,686.11 (close)

Euro/dollar: DOWN at $1.1623 from $1.1628 on Thursday

Pound/dollar: UP at $1.3536 from $1.3527

Euro/pound: DOWN at 85.89 pence from 85.96 pence

Dollar/yen: UP at 156.30 yen from 155.74 yen

Brent North Sea Crude: DOWN 0.5 percent at $95.06 per barrel

West Texas Intermediate: DOWN 0.8 percent at $90.57 per barrel

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P.Queiroz--PC