Jornal Do Brasilia - European stocks advance as Wall Street pulls back

Bitcoin struck a new record above $73,000, while oil rose on reports of declining US stockpiles and as Ukraine hit Russian refineries.

Even though inflation rose faster than expected in Tuesday's US consumer prices report, it was not enough to change investors' outlook that the Federal Reserve will cut interest rates in June.

"For the Fed, the reading doesn't provide them with enough evidence to have 'confidence' to cut rates, but it also isn’t probably too disturbing given the noise in the data," said Kathy Jones, chief fixed income strategist at Charles Schwab.

But on Wednesday, US shares struggled to hold onto those gains with the Dow up slightly and the broader S&P 500 index and tech-heavy Nasdaq Composite closing lower.

"Given that we have experienced a very exceptional, a really strong rally over the last three or four months, it is reasonable that the pace of gains will slow," said Angelo Kourkafas of Edward Jones.

Chris Beauchamp, an analyst at IG, said the rally in stocks "has moved into a choppier phase, a change from the relentless gains of the fourth quarter of 2023."

The "sideways price action could intensify as we begin the run towards next week’s Fed decision," Beauchamp said.

Thursday will see the release of US retail sales and producer prices data, before the Fed's policymaking council meets next week. Most investors do not expect any change next week but foresee a first interest rate cut in June.

Frankfurt's DAX 40 index briefly struck an all-time pinnacle above 18,000 points as speculation mounted that the European Central Bank could join the Fed and lower borrowing costs in June, while the CAC 40 in Paris also set a new intraday record.

London rose as official data showed the UK economy expanded 0.2 percent in January after a moderate contraction in December.

"There is growing evidence that the UK is emerging from its technical recession, although it’s hard to say that the economy is bouncing back," said Kathleen Brooks, an analyst at XTB.com.

Bitcoin surged to a new high of $73,664 to extend its blistering run, propelled partly by global moves to increase trading access to the world's biggest cryptocurrency, before pulling back slightly.

- Key figures around 2020 GMT -

New York - Dow: UP 0.1 percent at 39,043.32 points (close)

New York - S&P 500: DOWN 0.2 percent at 5,165.31 (close)

New York - Nasdaq Composite: DOWN 0.5 percent at 16,177.77 (close)

London - FTSE 100: UP 0.3 percent at 7,772.17 (close)

Paris - CAC 40: UP 0.6 percent at 8,137.58 (close)

Frankfurt - DAX: FLAT at 17,961.38 (close)

EURO STOXX 50: UP 0.4 percent at 5,00.55 (close)

Tokyo - Nikkei 225: DOWN 0.3 percent at 38,695.97 (close)

Hong Kong - Hang Seng Index: DOWN 0.1 percent at 17,082.11 (close)

Shanghai - Composite: DOWN 0.4 percent at 3,043.83 (close)

Euro/dollar: UP at $1.0952 from $1.0930 on Tuesday

Dollar/yen: UP at 147.78 yen from 147.67 yen

Pound/dollar: UP $1.2799 from $1.2795

Euro/pound: UP at 85.54 pence from 85.41 pence

Brent North Sea Crude: UP 2.6 percent at $84.03 per barrel

West Texas Intermediate: UP 2.8 percent at $79.72 per barrel

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M. Silva--JDB