European equities mostly dip on eve of Fed rate call

LONDON: European stock markets mostly fell Tuesday after a subdued Asian performance on the eve of a key monetary policy update from the US Federal Reserve.

Investors also awaited earnings results this week from US tech giants Amazon, Apple, Google-parent Alphabet and Microsoft.

While trading floors are geared up for a rocket-fuelled surge in economic activity in the second half of the year and into the next, thanks to vaccinations and the easing of lockdowns, traders are in wait-and-see mode.

The Fed's monetary policy meeting outcome on Wednesday is broadly expected to see it reassert its pledge to maintain ultra-loose policy until its goals on unemployment and inflation are met.

The dollar traded mixed against its main rivals on Tuesday.

The Fed's accompanying statement will be closely examined for clues on the state of the coronavirus-ravaged US economy and the future path for borrowing costs.

The central bank's meetings are a crucial focus of investor interest as they continue to fret that the expected strong recovery will send prices soaring and force policymakers to raise the record low interest rates that have been a pillar of the global rally.

Wednesday sees also US President Joe Biden make his first State of the Union address to Congress.

It could see him unveil a $1.8-trillion American Families Plan that would provide national child care, paid family leave and free community college, paid for with higher taxes on the rich.

Elsewhere, oil prices rose before Wednesday's key output meeting of OPEC and other major crude producers.

London stocks turned flat around midday, with news that energy major BP rebounded into first-quarter profit on recovering oil prices.

Frankfurt dropped 0.4 percent and Paris retreated 0.1 percent in early afternoon eurozone trade.

"What looks like a holding pattern across most major stock markets seems set to continue," noted IG analyst Chris Beauchamp.

"It is another day of tech earnings, but until these arrive late this evening there is relatively little to go on, aside from further speculation about any tinkering with tomorrow's (Federal Reserve) statement."

In Wall Street action on Monday, the S&P 500 and Nasdaq indices both ended at record highs.

However, Asia struggled to follow suit with most markets swinging in and out of positive territory.

Tokyo, Hong Kong, Sydney, Seoul, Jakarta and Manila were all in the red but Singapore, Taipei, Mumbai and Bangkok edged up. Shanghai was marginally higher.

Key figures around 1045 GMT -

London - FTSE 100: FLAT at 6,958.32 points

Frankfurt - DAX 30: DOWN 0.4 percent at 15,232.75

Paris - CAC 40: DOWN 0.1 percent at 6,267.69

EURO STOXX 50: DOWN 0.3 percent at 4,009.93

Tokyo - Nikkei 225: DOWN 0.5 percent at 28,991.89 (close)

Hong Kong - Hang Seng Index: FLAT at 28,941.54 (close)

Shanghai - Composite: FLAT at 3,442.61 (close)

New York - Dow: DOWN 0.2 percent at 33,981.57 (close)

Euro/dollar: DOWN at $1.2077 from $1.2086

Pound/dollar: UP at $1.3913 from $1.3899

Euro/pound: DOWN at 86.78 pence from 86.96 pence

Dollar/yen: UP at 108.31 yen from 108.08 yen

Brent North Sea crude: UP 0.6 percent at $66.01 per barrel

West Texas Intermediate: UP 0.7 percent at $62.33 per barrel