LONDON -  Europe's main stock markets rebounded, with London striking a fresh record high, but trading was cautious overall before the weekend pause.

READ MORE: Going not-so green

Equities had retreated Thursday on investor disappointment over a lack of policy detail from United States President-elect Donald Trump and allegations of emissions cheating at Fiat Chrysler. "After a trying day yesterday, the buyers have returned to European equity markets, with the bulls clearly not giving up their dominance without a fight," said Chris Beauchamp, analyst at online trading firm IG.

London's benchmark FTSE 100 index extended a record run higher since the end of last year, reaching 7,329.29 points. It was up 0.3 percent in late morning deals. Frankfurt and Paris each won half a percent in value.

Asian markets diverged as traders were given a weak lead from Wall Street where the Dow's drive for the 20,000-point mark has stalled. The dollar meanwhile struggled to break back after its recent sell-off as investors fret over Trump's lack of specifics on economic policy.

After a global rally fuelled by hopes his election victory would see a boost to the US economy, trading floors are turning more quiet with talk that the surge may have been overdone. Among the main losers in the recent pull-back is the dollar, which had soared on expectations the real estate tycoon's plans for big spending and tax cuts would fan inflation and force the Federal Reserve to lift interest rates.

The dollar just last week was hovering around 118.60 yen but on Thursday dropped below 114 yen after markets were left with scant detail on the president-elect's plans for boosting US growth. The greenback has since recovered slightly but remains under pressure.

There was muted reaction to end-of-the-year data from China showing the world's number-two economy was still struggling on the trade front. Hong Kong added 0.5 percent but Shanghai closed down 0.2 percent with little excitement over news that Chinese exports fell more than expected last month, while imports came in largely as expected.

Figures for the whole year showed exports down 7.7 percent and imports dropping 5.5 percent. "There remain some obstacles facing China's foreign trade development," Customs spokesman Huang Songping told reporters at a news conference announcing the results, adding the international trading environment was "severe and complex".