Volkswacht Bodensee - Stocks diverge; bitcoin hits fresh record high

Bitcoin peaked at $72,234 before paring gains.

Global equity markets and gold prices reached all-time pinnacles last week.

Investors have poured into equities, bitcoin and gold this year in anticipation of cuts to US interest rates which has weighed on the dollar.

This despite a forecast-busting US jobs report on Friday causing traders to price in fewer reductions in borrowing costs by the Federal Reserve than previously thought.

The Tokyo and European stock markets retreated Monday after pre-weekend losses on Wall Street, though this followed record highs for global equity indices in recent sessions thanks to rate-cut hopes and strong company earnings.

All eyes will be on US inflation data Tuesday for the latest clues on the outlook for rate cuts as inflation cools.

SPI Asset Management's Stephen Innes added that "the US labour market seems to be in a comfortable zone -- not too hot and not too cold".

"Reminiscent of Goldilocks's 'just right' porridge."

Traders are now factoring in three US rate cuts this year, compared with six that were pencilled in three months ago.

On the corporate front, Telecom Italia slumped nearly 10 percent following heavy losses last week on a badly-received strategy update centred on reducing debt.

In Asia, Japanese equities were weighed by a tech sell-off after losses Friday for the sector in New York, while exporter stook a hit from a stronger yen as the Bank of Japan considers tightening monetary policy, in contrast to rivals gearing up for rate cuts.

There was little reaction to news that the Japanese economy narrowly avoided a recession in the final months of last year.

Hong Kong and Shanghai rose, however, following figures showing a bigger-than-forecast jump in Chinese consumer prices last month.

- Key figures around 1200 GMT -

London - FTSE 100: DOWN 0.5 percent at 7,621.65 points

Paris - CAC 40: DOWN 0.3 percent at 8,001.81

Frankfurt - DAX: DOWN 0.7 percent at 17,693.22

EURO STOXX 50: DOWN 0.7 percent at 4,924.42

Tokyo - Nikkei 225: DOWN 2.2 percent at 38,820.49 (close)

Hong Kong - Hang Seng Index: UP 1.4 percent at 16,587.57 (close)

Shanghai - Composite: UP 0.7 percent at 3,068.46 (close)

New York - Dow: DOWN 0.2 percent at 38,722.69 (close)

Euro/dollar: UP at $1.0943 from $1.0942 on Friday

Dollar/yen: DOWN at 146.64 yen from 147.06 yen

Pound/dollar: DOWN at $1.2850 from $1.2854

Euro/pound: UP at 85.15 pence from 85.09 pence

West Texas Intermediate: DOWN 0.6 percent at $77.52 per barrel

Brent North Sea Crude: DOWN 0.6 percent at $81.65 per barrel

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R.Kloeti--VB