(MENAFN- Gulf Times) A strong run for world equities since Donald Trump's election slowed yesterday as Wall Street consolidated record highs and European markets eked out small closing gains.
Many investors stayed on the sidelines ahead of the publication later yesterday of minutes of the last Federal Reserve meeting which they hope will give fresh insights into the timing of the next rate hike.
'Domestic stocks are resting at all-time highs, and European equities are mixed, with the global markets assessing political risks on both sides of the Atlantic and awaiting the afternoon release of the minutes from the Fed's recent meeting, analysts at US brokerage Charles Schwab said in a note to investors.
French political news in the run-up to presidential elections in April and May lifted domestic markets late in the session as Emmanuel Macron, an independent candidate, won the support of Francois Bayrou, a veteran centrist.
The Macron/Bayrou ticket was credited with a good chance of keeping far right candidate Marine Le Pen, whose anti-EU stance has spooked investors, out of power.
French bond prices spiked in response and the Paris stock market index also reversed early weakness to close 0.2% higher at 4,895.88.
The euro, which has suffered from political uncertainty in Europe, also came back from early weakness to trade higher against the dollar.
The DAX 30 index in Frankfurt managed small gains, closing just shy of the key 12,000 level which it breached early in the session for the first time since the spring of 2015.
Investors cheered the sale by ThyssenKrupp of its loss-making Brazilian steel mill, sending the heavy industry giant's share price more than 4% higher.
But they were doubtful on Bayer even as the company said its Monsanto takeover was on track, selling the stock.
'Gains from engineer Thyssenkrupp's Brazilian asset sale are offsetting questions about Bayer's growth following the big Monsanto acquisition, said Mike van Dulken, head of research at Accendo markets.
Also, German business confidence unexpectedly bounced back in February, a key survey showed yesterday, even as political uncertainty continues to cloud the prospects for Europe's biggest economy.
The Ifo institute's headline index climbed to 111 points, the same level it reached in December, after slipping to 109.9 points in January.
London hung on to positive territory by a thread, helped by a recovering financial sector as Lloyds posted strong results, pushing the bank's stock over 4% higher.
Renewed optimism for banks also helped HSBC shares claw back 2% after their spectacular Tuesday drop on worse-than-expected results.
The rest of the FTSE 100 index was helped by sterling heading lower in reaction to mixed UK growth data ahead of Brexit, analysts said.
Sterling's weakness since last year's Brexit vote has been a boon for British exporters, boosting their earnings in other currencies than the pound.
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