Economic news from other parts of the world ensured that European bourses closed with strong gains.

The Nikkei rose 1.17% on Wednesday, dusting off an earlier 16-month low, as positive data from China and Australia restored confidence.

Wall Street gave back early gains to close little changed after minutes from the US Federal Reserve upset the mood in spite of better than expected consumer confidence figures.

The Nikkei fell 3.36% on Tuesday, its biggest decline in three weeks, as the yen continued to rise against major currencies and investors brace themselves for this week's US economic data.

Wall Street recovered from a mid-morning slump and closed well ahead on positive GDP figures and Fed chief Ben Bernanke's assertion that he was ready to help the recovery.

Growth in the world's biggest economy reassured traders over the prospects for global growth, ensuring bourses closed with gains.

Far East markets ended the week in mixed fashion, with Japan up on hopes authorities will intervene to cool down the rampant yen, while Hong Kong fell on weak earnings.

Wall Street made early gains but then turned south on fears over the US economy ahead of Friday's update on GDP.

Stocks finished the day higher, but were off their best levels as an early lead on Wall Street disappeared by the time thoughts turned to lunch in New York.

The Nikkei rose on Thursday as the yen pulled back from recent 15-year highs and investors got stuck into technology exporters.

US shares rallied to close higher despite more disappointing US economic data today.

Europe's main markets closed lower on Wednesday after Standard & Poor's cut eurozone minnow Ireland's credit rating, heightening fears over the sustainability of the global economic recovery.

The Nikkei fell 1.66%, with exporters leading the decline, as the yen remained strong and after a plunge in US home sales.

Poor house sales data and jitters over economic recovery around the World sent US share prices sliding.

Monday's cautious advance was short-lived as European shares closed sharply lower following a bigger than expected fall in US home sales in July.

The Nikkei fell below 9,000 for the first time in 15 months as the strong yen wiped out demand for exporters. Increasing concern about the slowing economic growth also dampened buyer appetite.

Wall Street's strong start to the week did not last long as poor economic confidence and worries about economic growth hit sentiment.