Trading on Wall Street was also volatile after three consecutive sessions of strong gains, with many investors going for cash due to recurring fears of a double-dip recession and the upcoming earnings season, which officially opens on Monday when Alcoa reports.

The MSCI world equity index rose 0.4 percent during the session, boosting weekly gains to 4.8 percent - which could be the highest since the 6.6 percent gain recorded in the week ending July 18, 2009.

The FTSEurofirst 300 index of top European shares ended 0.61 percent higher, also its biggest weekly rise since July 2009.

Gains on Wall Street were more modest. The Dow Jones Industrial Average added 4.54 points, or 0.04 percent, to 10,143.53, while the Standard & Poor's 500 Index rose 1.72 points, or 0.16 percent, to 1,071.97. The Nasdaq Composite Index was up 6.51 points, or 0.30 percent, at 2,181.91.

The euro fell against the dollar as investors pocketed part of the rally that had taken the single currency to its highest level in more than two months.

Traders said the euro was unable to remain above the key resistance level of $1.27 due to lingering worries about the euro-zone economy.

The single European currency was down 0.46 percent at $1.2635 from a previous session close of $1.2693.

The dollar was also up against a basket of major currencies, with the US Dollar Index up 0.14 percent.

Against the Japanese yen, the greenback was up 0.16 percent at 88.52.

US Treasury prices fell as higher global stocks reduced the safe-haven allure of government bonds but also because investors made room for $69 billion worth of coupon-bearing supply next week.

The US Treasury Department will sell $35 billion in three-year debt on Monday, $21 billion in 10-year notes on Tuesday and $13 billion in 30-year bonds on Wednesday.

The benchmark 10-year US Treasury note was down 6/32 in price, with the yield at 3.0574 percent.

Gold prices rose back above $1,210 an ounce. Some investors were cautious about the US earnings season and others found the metal attractively priced. Spot gold jumped 1.07 percent, to $1,209.20 an ounce.

Oil prices rose for the third straight day on Friday. Benchmark crude added 40 cents at $75.84 a barrel in midday trading on the New York Mercantile Exchange. The contract rose $1.37 to settle at $75.44 on Thursday.

In London, Brent crude was up 51 cents to $75.22 a barrel on the ICE Futures exchange.