* Stocks stay on track for best week in eight
* Fed rate decision next week hangs in the balance
* "Quite a fragile time" - equity fund manager
By Jamie McGeever
LONDON, Sept 11 (Reuters) - Global stocks around the world slipped into the red on Friday but remained on track for their biggest weekly gain in eight as investors grappled with the possibility of U.S. interest rates rising next week.
While next Thursday's eagerly anticipated decision from the Federal Reserve hangs very much in the balance, meaning the potential for market volatility remains high, stocks and government bond yields have moved higher this week.
Reflecting the growing uncertainty as the big day approaches, however, the dollar slipped on Friday and was on track for a fall of nearly 1 percent on the week, its first weekly decline in three.
"We're going through quite a fragile time, and we'll have to see how it evolves from here. That will depend on Fed action, as well as whether there's further negative news from China," said Veronika Pechlaner, European equity fund manager at Ashburton.
"This is not the time to make huge bets either way, but longer term we remain constructive on equities."
In early trading on Friday European shares were lower. The FTSEuroFirst index of leading 300 shares was down 0.5 percent at 1,408 points, but still up more than 1 percent on the week, its best performance since mid-July.
Britain's FTSE 100 was down 0.2 percent at 6,139 points, Germany's DAX was down 0.5 percent at 10,161 points and France's CAC 40 was off 0.3 percent at 4,582 points.
U.S. stock futures slipped 0.2 percent, suggesting a slightly weaker opening on Wall Street. The S&P 500 has bounced back from last week's 3.4 percent fall, however, and is well on track for its best week since July.
MSCI's broadest index of Asia-Pacific shares outside Japan slipped 0.1 percent, but was on for a rise of more than 2.5 percent on the week, its biggest weekly gain in five months.
Chinese shares ended another choppy week little changed on Friday. The Shanghai Composite Index rose 1.2 percent on the week, a welcome relief for investors after it had lost around 20 percent in the preceding three.
Chinese industrial output, retail sales and investment data on Sunday will give clues on whether the world's second-largest economy is continuing to lose momentum and help set the tone for markets next week.
YUAN FIRMS, DOLLAR STEADIES
U.S. data on Thursday suggested the labour market was gaining momentum in early September as fewer Americans filed for weekly unemployment benefits. But a separate report showed weak inflation, further clouding the outlook for what the Fed will decide to do at its Sept. 16-17 policy meeting.