London (AFP) - Stocks moved higher Friday, with Wall Street recovering early losses spurred by weaker-than-expected US growth after the US Supreme Court overturned most of President Donald Trump’s tariffs, which could boost company earnings around the globe.

But the uncertain outlook for the world’s biggest economy and the risk of US military strikes against Iran over its nuclear programme kept investors cautious heading into the weekend.

Crude prices pulled back as traders weighed the chances of US action that could threaten Middle East oil supplies.

In the United States, the economy grew 1.4 percent in the fourth quarter, well below the 2.5 percent analysts had forecast, while a price index for December rose to 2.9 percent, more than anticipated.

That poured cold water on hopes that US growth was holding up and inflation was contained despite Trump’s tariffs barrage, and complicated the outlook for more interest rate cuts by the Federal Reserve.

The data came after weeks of Wall Street losses on fears that massive AI investments may be overdone, and that the technology will undermine swathes of traditional business models.

“Today’s reports are unlikely to lift markets out of their current environment,” said Bret Kenwell, US investment analyst at eToro.

In Europe, 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.

Stock indices were higher across most of Europe, while in Asia, Hong Kong fell as it reopened from a three-day break for the Lunar New Year, and Tokyo was also down.

Oil prices slipped 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 conflict that could threaten supplies.

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

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

- Key figures at around 1500 GMT -

New York - Dow: DOWN 0.2 percent at 49,306.83 points

New York - S&P: FLAT at 6,860.70

New York - Nasdaq: FLAT at 22,694.72

London - FTSE 100: UP 0.6 percent at 10,694.08

Paris - CAC 40: UP 1.0 percent at 8,479.02

Frankfurt - DAX: UP 0.4 percent at 25,143.30

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

Euro/dollar: UP at $1.1768 from $1.1767 on Thursday

Pound/dollar: UP at $1.3479 from $1.3458

Euro/pound: DOWN at 87.33 pence from 87.43 pence

Dollar/yen: UP at 155.39 yen from 155.07 yen

Brent North Sea Crude: DOWN 0.3 percent at $71.46 per barrel

West Texas Intermediate: DOWN 0.2 percent at $66.24 per barrel