Updates for midday European session

By Lawrence White and Tom Westbrook

LONDON/SINGAPORE, April 25 (Reuters) - European and Asian stocks headed for a second straight week of gains on Friday and the dollar eyed its first weekly rise in more than a month, as investors took comfort from signs the U.S. and China were prepared to pull back from their trade war.

However, in a sign of nervousness around how sustained any such relief might be, U.S. stock futures turned slightly negative by 1048 GMT following the publication of a Time magazine interview with U.S. President Donald Trump where he said high tariffs on foreign imports a year from now would represent "total victory".

Trump also said his administration was talking with China to strike a tariff deal and that Chinese President Xi Jinping had called him, contradicting comments from Chinese officials on Thursday.

Europe's benchmark STOXX index .STOXX rose 0.27% as China exempted some U.S. imports from its 125% tariffs, in the clearest sign yet that Beijing was responding to concerns about the impact of tit-for-tat tariffs on its economy.

U.S. futures had started positive after tech giant and Google parent Alphabet GOOGL.O beat profit expectations and reaffirmed AI spending targets, pushing its shares up nearly 5% in after-hours trade and pulling along peers. .N

By 1048 GMT S&P e-mini futures fell 0.26%, while NASDAQ 100 futures fell 0.36%. EScv1, NQc1.

The dollar, which has taken a beating through a volatile few weeks of tariff announcements, reversals and a flight out of U.S. assets, found a footing around $1.1354 per euro EUR=EBS and 143.3 Japanese yen JPY=EBS. FRX/

"The peak in terms of threatened tariff rates is likely behind us," said Eli Lee, chief investment strategist at Bank of Singapore.

"In terms of the U.S.-China standoff, both sides have indicated they would not raise rates beyond current levels."

Tit-for-tat tariffs that began with U.S. President Donald Trump's announcement of hefty import levies on April 2 had threatened to stall trade between the world's two biggest economies and sparked fears of a slowdown in global growth.

UNEASY CALM

In Hong Kong, the Hang Seng .HIS rose 1% and there were small rises for mainland China's Shanghai Composite .SSEC and blue chip CSI300 .CSI300. .HK

In Japan, the Nikkei .N225 was up 1.8% on Friday and has regained all its losses since Trump's announcement of the highest U.S. tariffs in 100 years - levies he largely suspended, except for China and a baseline tariff of 10%.

"There is probably a feeling from market participants that they have regained some 'control' on the U.S. government, and can somehow force a more friendly stance on key topics," said ING currency strategist Francesco Pesole in a note to clients.

"Investors will be seeking confirmation of the more optimistic stance on U.S. assets to justify further dollar gains."

The U.S. dollar index =USD was up 0.2% for the week at 99.623, and U.S. Treasury yields held flat.

WARNING SIGNS

Gold XAU= prices, which have soared this year as investors sought safe haven assets decoupled from the dollar, slipped 1% on Friday and were heading for a weekly fall on signs of the potential de-escalation of trade tensions.

Despite the positive mood, there were also plenty of warning signs that markets' surface calm may not last long.

Overnight, Procter & Gamble PG.N, PepsiCo PEP.O, Chipotle Mexican Grill CMG.N and American Airlines AAL.O all cut or withdrew forecasts due to elevated uncertainty among consumers.

Analysts at Phillip Securities in Singapore noted the Gold/S&P 500 ratio, a gauge of investors' gloom, was at its highest since the pandemic-driven bear market of 2020.

(Reporting by Tom Westbrook; Editing by Saad Sayeed, Kate Mayberry and Aidan Lewis)

((tom.westbrook@tr.com; +65 6973 8284;))