Global stocks cautious ahead of US Fed chief speech

World stock markets steadied Friday as traders treaded cautiously ahead of a speech by US central bank chief Janet Yellen that could shed more light on a coming rate hike.

A modest upgrade to the estimate for US economic growth at the start of the year helped send US shares marginally higher ahead of a long holiday weekend.

Traders in Europe appeared largely uninspired, with scant major corporate or economic news to get their teeth into. However equities reached their highest level for the month.

Shares in London's FTSE, Paris' CAC and the DAX in Frankfurt all edged marginally higher.

Saxo Banque analyst Andrea Tueni said the Paris stock exchange was taking "a break" after a good run.

He said this was "quite normal after a good week which saw it come back above 4,500 points thanks to the increase in oil and the fall of the euro to the dollar," he said.

Traders were awaiting clues about the prospects of an imminent US interest rate hike when the Federal Reserve chief speaks at Harvard University later, after recent hints of an increase in June or July from Fed officials.

A two-day global stocks rally showed signs of fatigue on Thursday as oil prices briefly breached $50 a barrel for the first time this year, before retreating.

One bright spot on the otherwise relatively quiet corporate news front came from strong demand for shares in Philips's lighting division, which made its stock market debut in Amsterdam.

The shares closed well above their initial flotation price of 20 euros, rising 10 percent to 22 euros.

Similarly French homeware designer Maisons du Monde saw solid demand for its initial listing on the Paris stock exchange, with shares closing 5.9 percent higher at 18.00 euros.

- G7 warns on Brexit -

The US Commerce Department said first-quarter growth was at an annual rate of 0.8 percent, up from the originally estimated 0.5 percent.

Ahead of Yellen, markets digested comments from a Group of Seven summit.

A final communique from the G7 leaders emphasised economic growth was an "urgent priority" and highlighted growing international alarm over the possibility of a so-called Brexit as the UK prepares for a June 23 referendum on whether to leave the EU.

"Global growth is our urgent priority," the G7 said, adding that growth remained "moderate and below potential".

However Global Economics' Michael Pearce said he saw reasons to be more upbeat on global prospects.

"Promoting growth is a worthwhile aim but the implication that the world economy is on the brink of a recession is wide of the mark," he said in a note to investors.

Leaders added that a Brexit would "reverse the trend towards greater global trade and investment and the jobs they create", and that it was a "serious risk to growth".

British Prime Minister David Cameron is campaigning for Britain to stay in the EU, with recent polls suggesting a widening lead for supporters of continued membership.

- Key figures around 1550 GMT -

New York - Dow: UP 0.2 percent at 17,868.22 points

New York: Nasdaq: UP 0.5 percent at 4,925.54

New York: S&P 500: UP 0.3 percent at 2,096.93

London - FTSE 100: UP 0.1 percent at 6,270.79 (close)

Frankfurt - DAX 30: UP 0.1 percent at 10.286,31 (close)

Paris - CAC 40: UP 0.05 percent at 4,514,74 (close)

EURO STOXX 50: UP 0.1 percent at 3,074.30

Tokyo: Nikkei 225: UP 0.4 percent at 16,834.84 (close)

Shanghai - Composite: DOWN 0.05 percent at 2,821.05 (close)

Hong Kong - Hang Seng: UP 0.9 percent at 20,576.77 (close)

Euro/dollar: DOWN at $1.1136 from $1.1194 on Thursday

Dollar/yen: UP at 109.94 from 109.76 yen