On Friday European stocks advanced, snapping the Stoxx Europe 600 Index’s largest two-day drop in five months, after German business confidence climbed to a record high in January. U.S. futures fluctuated and Asian shares fell.

European shares rose in early trade as miners got support from key metals prices which bounced back after steep losses in the previous session on concerns about further monetary tightening in China. The pan-European FTSEurofirst 300 index was up 0.3 percent after falling 1.1 percent on Thursday. Analysts said that investors bought beaten-down stocks and were focusing on company results and macroeconomic numbers.

Royal Bank of Scotland Group Plc soared 4.2 percent after a report that the bank has talked to the U.K. government about leaving the program to insure its toxic assets. ArcelorMittal jumped 2.9 percent as UniCredit SpA upgraded the shares. Finmeccanica SpA surged 4.3 percent as it posted higher-than- forecast free operating cash flow in 2010.

Oil rebounded from its lowest in almost two weeks as growing confidence in the economic recovery made Thursday’s price slump appear excessive.

Crude pared its third weekly decline in four as German business confidence unexpectedly rose to a record high in January amid booming exports to Asia. French business confidence jumped to its highest in almost three years.

Japanese stocks fell, with the Topix index posting its biggest weekly decline in about five months, as trading houses dropped amid declines in oil and metal prices on concern China will raise interest rates and cool demand. The Nikkei 225 Stock Average slipped 1.6 percent at the close of trading in Tokyo, reversing an earlier gain of 0.2 percent. The broader Topix index slid 1.8 percent after earlier rising 0.2 percent.