LONDON: World stocks mostly slid Friday as investors paused for breath following a global rally after US and Japanese central banks kept their easy-money policies in place.
In Europe, Frankfurt and Paris lost around half a percent in value, while London was steady.
Investors also took their foot off the pedal in Asia Friday after two days of strong gains while the dollar recovered some ground on the yen after the Fed's decision to hold interest rates sent it tumbling.
"The Fed-fuelled rally that catapulted shares out of the summer doldrums this week is showing some signs of fatigue," noted analyst Jasper Lawler at trading firm CMC Markets.
"The immediate reaction across markets to the Fed's decision to keep rates on hold again has been that of lower treasury yields, higher stock prices and a weaker dollar.
"This reflects an understanding that the Fed is not about to raise rates for at least three months. It could easily be longer if US economic data remains sluggish."
World equities and high-yielding currencies had soared since Wednesday when the Bank of Japan said it would target boosting inflation and the Fed also pressed on with policies that makes cash cheap.
Wall Street also posted mild losses at the opening, but Twitter shares soared amid talk of a takeover bid for the company.
- Tepid eurozone growth -
Data showing eurozone economic growth has slowed to its weakest pace since January 2015 added to negative sentiment.
IHS Markit said its preliminary September Composite Purchasing Managers Index (PMI) for the eurozone fell to 52.6 points from 52.9 points in August, although it still came in above the 50 points expansion point.
Economist Florian Hense at Berenberg Bank said the PMI figures indicate the eurozone economy likely expanded by 0.3 percent in the third quarter, the same rate at which it grew in the second quarter.
Revised official data also showed that the French economy contracted by 0.1 percent in the second quarter, although the PMI data came in at a 15-month high at 53.3 points after 51.9 in August.
Meanwhile IPO action livened up trading in Copenhagen as shares in Danish card payment services company Nets began trading.
Its shares rose by nearly three percent after the opening, but were 1.1 percent lower in mid-afternoon trading.
The IPO valued the group at around 30 billion kroner (4.0 billion euros, $4.5 billion).
Investors in Asia also took a breather Friday after two days of strong gains.
Tokyo's stock market -- which was closed Thursday for a holiday a day after surging 1.9 percent on Wednesday-- receded on Friday as a stronger yen offsetting the euphoria of the BoJ's easy money move.
At the close, Tokyo's benchmark Nikkei 225 index was down 0.32 percent.
"While the Federal Reserve interest rate decision is attracting the most headline attention, the major market action this week has been in the Japanese yen where traders have once again rejected the efforts by the Bank of Japan (BoJ) to resume weakness in the Japanese yen," said FXTM analyst Jameel Ahmad.
"Despite the BoJ making a significant change to its policy framework ... investors rejected the efforts in spectacular fashion with this leading to the dollar returning to the major psychological level around 100 yen."
- Key figures around 1420 GMT -
London - FTSE 100: DOWN 0.1 percent at 6,918.09 points
Frankfurt - DAX 30: DOWN 0.5 percent at 10,621.48
Paris - CAC 40: DOWN 0.5 percent at 4,485.92
EURO STOXX 50: DOWN 0.7 percent at 3,029.44
New York - DOW: UP 0.2 percent at 18,349.21 (close)
Tokyo - Nikkei 225: DOWN 0.3 percent at 16,754.02 (close)
Hong Kong - Hang Seng: DOWN 0.3 percent at 23686.48 (close)
Shanghai - Composite: DOWN 0.3 percent at 3,033.90 (close)
Euro/dollar: UP at $1.1222 from $1.1208 late Thursday
Dollar/yen: UP at 100.96 yen from 100.77 yen
Pound/dollar: DOWN at $1.2953 from $1.3079
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