Jornal Do Brasilia - Stock markets retreat as traders take profits

Eyes were on the release later in the day of minutes from the Federal Reserve's May policy decision for clues on the outlook for cuts to US interest rates.

The picture has been clouded by mixed US data.

The May meeting came before figures last week indicated price rises were easing, stoking fresh hopes the US central bank could cut interest rates a couple of times this year, starting in July.

Hopes of rate cuts on both sides of the Atlantic have helped to support stock markets, with European equity indices and Wall Street achieving record highs in recent sessions.

Still, a number of Fed decision-makers have warned they are not willing to call for a reduction until they are sure higher borrowing costs are doing their job and that inflation is truly under control.

After a mildly positive start to the week in New York, where the Nasdaq hit a record high and the Dow ended down from Friday's record, Asian and European investors were cautious Tuesday as they eyed rising commodity prices.

Copper, a key gauge of the state of the economy owing to its widespread use, hit a record above $11,400 Monday, while gold was also hanging just short of its own peak touched on the same day. Silver was around an 11-year high.

"Copper is now on a month-old rally boosted by tight supply with smelters in China decreasing output," said National Australian Bank's Rodrigo Catril.

"But more recently (the) BHP-Anglo bid has increased attention on the demand prospect from fast-growing sectors including EVs, renewable energy and artificial intelligence," he added, referring to mining giant BHP's buyout offer of rival Anglo American.

Hong Kong led losses, shedding more than two percent after soaring around 30 percent from its January low, while Tokyo, Shanghai, Sydney, Seoul, Singapore and others in Asia were also in the red.

London, Paris and Frankfurt were also down.

China's announcement last week of plans to support the country's battered property sector by buying huge numbers of unsold homes -- as well as lower requirements for buyers -- provided a huge boost to markets.

But news Tuesday rammed home the tough work they have ahead of them, with data showing local governments took in the least amount of revenue for land sales in eight years.

Chinese property firms, which soared Friday on the support news, sank in Hong Kong.

Later on Wednesday, investors will closely watch earnings results from US chip-maker and stock market star Nvidia, whose high-end processors have been prized by artificial intelligence companies.

"For the market to keep momentum this week, it may come down to just one stock -- Nvidia," Freedom Capital Markets' Jay Woods said. "It sure feels like the hype for this earnings event will be the talk of trading desks and financial media all week."

- Key figures around 1100 GMT -

London - FTSE 100: DOWN 0.4 percent at 8,394.31 points

Paris - CAC 40: DOWN 0.9 percent at 8,120.24

Frankfurt - DAX: DOWN 0.4 percent at 18,703.91

EURO STOXX 50: DOWN 0.7 percent at 5,040.47

Tokyo - Nikkei 225: DOWN 0.3 percent at 38,946.93 (close)

Hong Kong - Hang Seng Index: DOWN 2.1 percent at 19,220.62 (close)

Shanghai - Composite: DOWN 0.4 percent at 3,157.97 (close)

New York - Dow: DOWN 0.5 percent at 39,806.77 (close)

Dollar/yen: DOWN at 156.23 yen from 156.29 yen on Friday

Euro/dollar: UP at $1.0868 from $1.0861

Pound/dollar: UP at $1.2717 from $1.2707

Euro/pound: UP at 85.48 from 85.46 pence

West Texas Intermediate: DOWN 1.3 percent at $78.73 per barrel

Brent North Sea Crude: DOWN 1.4 percent at $82.53 per barrel

L. Rodrigues--JDB