Volkswacht Bodensee - Stock markets diverge, gold hits high tracking global unrest

It followed Tuesday's tech-led losses on Wall Street.

The US Federal Reserve is widely expected to extend its rate cut pause Wednesday as it seeks to chart a path through the economic turbulence unleashed by Trump's ever-changing approach to tariffs.

The price of gold, seen as a safe-haven investment, struck a record high above $3,045 an ounce on fears of a fresh upsurge in hostilities in the Middle East after Israel launched its most intense strikes on Gaza since a ceasefire with Hamas took effect.

Oil prices dropped, however, as Hamas said it remained open to negotiations while calling for pressure on Israel to implement a Gaza truce.

Over in Moscow, Russia accused Ukraine of trying to "derail" agreements reached between Vladimir Putin and Donald Trump to halt strikes on energy infrastructure.

The yen gave up initial gains against the dollar after the Bank of Japan kept interest rates on hold, warning about "high uncertainties" including over trade.

Japan's Nikkei 225 stock index also gave up gains to end lower.

Elsewhere in Asia, Jakarta's stock market rebounded only slightly, having plummeted more than seven percent Tuesday in the biggest plunge since September 2011, over concerns about Indonesia's economy amid weak consumer spending.

In Europe, London and Frankfurt indices dipped while Paris gained in late morning deals.

Official data showed eurozone inflation eased more than previously estimated in February, driven by a slowdown in consumer price increases in Germany.

Inflation in the single currency area slowed to 2.3 percent last month, a slight change from the 2.4 percent figure published on March 3.

Elsewhere, the Turkish lira plunged to an all-time low against the dollar on Wednesday, after police raided the home of Istanbul's powerful opposition mayor, Ekrem Imamoglu.

The currency was trading at 39 liras per dollar after the mayor, a key opponent of President Recep Tayyip Erdogan, was detained over a corruption probe, a move denounced by his opposition CHP party as a "coup".

Looking to Wall Street's reopening, "the S&P 500 is set to open flat, amid high caution ahead of the crunch central bank decision", said Susannah Streeter, head of money and markets at Hargreaves Lansdown.

"The Fed is widely expected to keep interest rates on hold, but investors will be hanging on (Fed chief) Jerome Powell’s words about future rate cuts.

"The tide has turned, with even the prospect of lowering borrowing costs unlikely to provide much solace given that they would be seen as indicating increasing weakness in the US economy," Streeter added.

Many economists have warned that the tariffs -- which are being met with retaliation by some countries -- will tip the US economy, and possibly others, into recession.

- Key figures around 1030 GMT -

London - FTSE 100: DOWN 0.1 percent at 8,696.72 points

Paris - CAC 40: UP 0.5 percent at 8,154.74

Frankfurt - DAX: DOWN 0.1 percent at 23,351.57

Tokyo - Nikkei 225: DOWN 0.3 percent at 37,751.88 (close)

Hong Kong - Hang Seng Index: UP 0.1 percent at 24,771.14 (close)

Shanghai - Composite: DOWN 0.1 percent at 3,426.43 (close)

New York - Dow: DOWN 0.6 percent at 41,581.31 (close)

Euro/dollar: DOWN at $1.0898 from $1.0944 on Tuesday

Pound/dollar: DOWN at 1.2969 from 1.3003

Dollar/yen: UP at 149.73 yen from 149.36 yen

Euro/pound: DOWN at 84.02 pence from 84.16 pence

West Texas Intermediate: DOWN 0.4 percent at $66.50 per barrel

Brent North Sea Crude: DOWN 0.3 percent at $70.33 per barrel

P.Staeheli--VB