LONDON: Europe's main stock markets and the dollar pulled lower Thursday as investors cashed in recent gains and eyed upcoming US data.
Global equities had risen Wednesday as investors reacted to fresh indications that the US Federal Reserve could decide to lift interest rates as early as March.
"Blue-chips were down in early trading," noted Russ Mould, investment director at stockbroker AJ Bell.
"This afternoon, US jobless, building, housing and manufacturing data will be closely watched as traders assess the likelihood of a US rate hike in March."
London was hampered also by a number of companies going ex-dividend, meaning that the stock no longer carries the right to the most recently declared shareholder payout.
"The FTSE 100 is trading modestly lower but most of these losses can be explained away by a number of big names going ex-dividend," noted IG analyst Chris Beauchamp.
"BP, Shell, AstraZeneca and Imperial Brands are all trading without the benefit of the dividend, and with these heavyweights in the red it is going to be tough for the market to push higher.
"Given the steady rally we have seen over the past week or more, however, some weakness is to be welcomed, taking a little heat out of the market."
Drugs firm AstraZeneca shed 3.7 percent and cigarette maker Imperial Brands sank 0.6 percent.
Oil giant BP lost 1.6 percent and rival Royal Dutch Shell saw its 'A' shares dip 1.5 percent in value.
Investors meanwhile brushed off another record Wall Street close and other upbeat US data.
New York's three main indexes built on their recent surge, racking up a fifth successive day of record closes, after figures showed US inflation hit a four-year high in January, fuelling bets on an interest rate hike soon.
Added to the picture, US President Donald Trump said he would release specifics on his new tax plan in the "not-too-distant future", adding it will be "good and simpler".
His remarks came less than a week after he promised "phenomenal" reforms to the tax system, spurring a surge in global markets and the dollar.
"The strong numbers highlight that the US economy is in fairly healthy shape," analyst Greg McKenna at trading group AxiTrader.
"The key is the data and president Trump's recommitment to the release of the tax plan everyone is waiting for."
Fed chief Janet Yellen also reiterated her view to Congress that the world's top economy was on a strong growth track, a day after indicating borrowing costs could increase any time soon -- leading to speculation of a move as soon as March.
- Key figures around 1130 GMT -
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London - FTSE 100: DOWN 0.5 percent at 7,268.01 points
Frankfurt - DAX 30: DOWN 0.2 percent at 11,769.74
Paris - CAC 40: DOWN 0.4 percent at 4,903.98
EURO STOXX 50: DOWN 0.3 percent at 3,312.48
Tokyo - Nikkei 225: DOWN 0.5 percent at 19,347.53 (close)
Hong Kong - Hang Seng: UP 0.5 percent at 24,107.70 (close)
Shanghai - Composite: UP 0.5 percent at 3,229.62 (close)
New York - Dow: UP 0.5 percent at 20,611.86 (close)
Euro/dollar: UP at $1.0636 from $1.0601
Pound/dollar: UP at $1.2506 from $1.2461
Dollar/yen: DOWN at 113.63 yen from 114.16 yen
Oil - Brent North Sea: UP five cents at $55.80 per barrel
Oil - West Texas Intermediate: UP five cents at $53.16
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