Volkswacht Bodensee - Stock markets diverge, oil gains after China rebounds

Europe's main equity indices were little changed in midday deals after yet more record-highs Wednesday on Wall Street.

Oil prices jumped around 1.5 percent as volatility continued to dominate the crude market.

The dollar was mixed against its main counterparts before US consumer price inflation data Thursday and after the Federal Reserve revealed a split on last month's bumper cut to US interest rates.

Shanghai's stock market closed 1.3 percent higher Thursday and Hong Kong rose 3.0 percent.

"The China trade made a small comeback, providing a positive tailwind for global markets," said Matt Britzman, senior equity analyst at stockbroker Hargreaves Lansdown.

"All eyes are now on (US) inflation data out later today. While it may not be the Fed's preferred inflation measure, it still has the power to move markets."

Hong Kong and mainland markets whipsawed this week as the euphoria over China's recent moves to boost its economy was dampened by a news conference that failed to unveil more measures or give details on those already announced.

On Thursday, however, investors welcomed news that the People's Bank of China had released details of a "swap facility" that will allow "qualified securities, funds and insurance companies" to access more than $70 billion in liquidity to purchase equities.

The move helped the Shanghai index claw back some of its six-percent plunge Wednesday -- its worst performance in more than four years.

On Wall Street, the Dow and S&P 500 chalked up all-time highs Wednesday thanks to a burst from tech giants including Amazon and Apple.

In London on Thursday, shares in GSK jumped more than five percent after the British pharmaceutical company agreed to pay $2.3 billion in the United States to end lawsuits alleging that its Zantac heartburn drug caused cancer.

- Key figures around 1045 GMT -

Shanghai - Composite: UP 1.3 percent at 3,301.93 points (close)

Hong Kong - Hang Seng Index: UP 3.0 percent at 21,251.98 (close)

London - FTSE 100: DOWN 0.1 percent at 8,237.44 points

Paris - CAC 40: DOWN 0.1 percent at 7,548.84

Frankfurt - DAX: UP 0.1 percent at 19,267.69

Tokyo - Nikkei 225: UP 0.3 percent at 39,380.89 (close)

New York - Dow: UP 1.0 percent at 42,512.00 (close)

Brent North Sea Crude: UP 1.5 percent at $77.73 per barrel

West Texas Intermediate: UP 1.6 percent at $74.39 per barrel

Euro/dollar: DOWN at 1.0935 from $1.0940 on Wednesday

Pound/dollar: UP at $1.3075 from $1.3062

Dollar/yen: DOWN at 148.83 yen from 149.35 yen

Euro/pound: DOWN at 83.62 pence from 83.72 pence

R.Buehler--VB