Stock markets mixed on Fed concern over Trump policies
Global stock markets were mixed on Thursday and gold hit a record high amid Federal Reserve concerns that US President Donald Trump's tariffs and immigration measures could reignite inflation.
European markets reacted also to a flurry of company earnings pulling the indices in different directions.
While London's FTSE 100 fell, Paris and Frankfurt bourses rose.
"Investors are mulling the impact of interest rates staying higher for longer, given that policymakers expect US trade policy to push up the price of consumer goods," said Susannah Streeter, head of money and markets at Hargreaves Lansdown.
Minutes from the US central bank's January meeting suggested officials were not likely to cut interest rates any time soon -- having reduced them at three successive meetings -- citing worries about the impact of Trump's policies.
Economists have warned that the Trump's pledge to ramp up tariffs on trade partners while slashing taxes, regulations and immigration could fan inflation.
Geopolitical uncertainty also led gold to hit a fresh record above $2,954 as investors rushed into the safe-haven commodity, which is sought out in times of uncertainty.
Dealers have been keeping a nervous eye on talks over Ukraine with Trump calling Ukrainian leader Volodymyr Zelensky a "dictator" on Wednesday.
The United States has provided essential funding and arms to Ukraine after Russia's invasion but Trump made an abrupt policy shift by opening talks with Moscow.
All three main indexes in New York rose on Wednesday, with the S&P 500 at another all-time peak, but Asian markets failed to sustain the positive momentum in Thursday's session.
Shanghai managed to pare back early losses to end flat after Trump suggested on Wednesday that a trade deal with China was "possible".
While Hong Kong dropped more than one percent as the China tech surge came to an end.
Tokyo was weighed down by a stronger yen, which briefly broke below 150 per dollar as the Bank of Japan eyes more interest rate hikes.
In company news, a sharp drop in profit left France's Carrefour supermarket group diving around six percent in Paris, while industrial giant Schneider Electric gained six percent on strong results.
Shares in British Gas owner Centrica soared eight percent, topping London's FTSE 100 index, after it announced additional share buybacks and plans to embark on greater investment.
Elsewhere in London, Lloyds Banking Group rose over four percent as investors shrugged off its profit drop.
In Frankfurt, Mercedes-Benz receded two percent after it announced that 2024 profits plunged by almost a third amid a slump in China and weak electric car sales.
- Key figures around 1100 GMT -
London - FTSE 100: DOWN 0.2 percent at 8,695.86
Paris - CAC 40: UP 0.6 percent at 8,158.04
Frankfurt - DAX: UP 0.5 percent at 22,548.00
Tokyo - Nikkei 225: DOWN 1.2 percent at 38,678.04 (close)
Hong Kong - Hang Seng Index: DOWN 1.6 percent at 22,576.98 (close)
Shanghai - Composite: FLAT at 3,350.78 (close)
New York - Dow: UP 0.2 percent at 44,627.59 (close)
Euro/dollar: UP at $1.0443 from $1.0428 on Wednesday
Pound/dollar: UP at $1.2615 from $1.2582
Dollar/yen: DOWN at 150.06 from 151.40 yen
Euro/pound: DOWN at 82.79 pence from 82.81 pence
West Texas Intermediate: UP 0.3 percent at $72.28 per barrel
Brent North Sea Crude: DOWN 0.4 percent at $75.75 per barrel
A.Taylor--RTC
