European stock markets mostly retreated Friday after gains among Asia's main indices, ahead of a likely cut to US interest rates next week.

Wall Street reached fresh record highs Thursday after US inflation and jobless claims data cemented expectations that the Federal Reserve will trim borrowing costs.

"Stock markets (are) at record highs on hopes for falling interest rates," noted Derren Nathan, head of equity research at stockbroker Hargreaves Lansdown.

There were fresh records this week also for the Tokyo and Seoul stock markets, while London on Friday neared a new all-time high.

London's benchmark FTSE 100 was a rare gainer among European stock markets as the British pound weakened on data showing the UK economy stalled in July.

"While the data underscores the fragile state of th

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