Volkswacht Bodensee - Stocks downbeat ahead of key US data

Investors have been on a buying spree since shares hit deep lows following President Donald Trump's April global tariff bombshell, with sentiment buoyed by trade agreements and signs that the Federal Reserve was ready to cut US interest rates.

The US central bank -- citing a weak labour market -- last week announced its first rate reduction of the year, and forecast there could be two more by 2026.

The dollar continued to struggle Thursday in the wake of the easing, as lower interest rates make the US currency less appealing to investors.

"Risk-off sentiment is dominating after declines on Wall Street dragged European indices into the red," noted Victoria Scholar, head of investment at Interactive Investor.

In Asia, where the technology sector remained in sharp focus, major indices ended steadier.

Hong Kong's stock market closed down 0.1 percent, with tech titan Alibaba in the red after Wednesday's gain of more than nine percent.

The surge was in reaction to its chief executive saying the e-commerce group planned to ramp up spending on artificial intelligence.

Shares in China's biggest car exporter, Chery Automobile, rocketed more than 13 percent on its trading debut before ending the session up 3.8 percent.

Ahead of Wall Street opening on Thursday, the European Union said it had "absolutely no intention" of scrapping its landmark Digital Markets Act, after Apple demanded Brussels repeal the competition rules.

Looking ahead to Friday's US inflation data, some Fed officials, including boss Jerome Powell, are trying to take a more cautious approach over future rate cuts, citing still-elevated prices.

Powell's remarks this week that stocks are "fairly highly valued" and that there was "no risk-free path" on rates has tempered the euphoria on trading floors.

The Fed will be keeping watch on the its preferred gauge of inflation -- the personal consumption expenditure index -- which comes ahead of next week's US non-farm payrolls report.

- Key figures at around 1100 GMT -

London - FTSE 100: DOWN 0.2 percent at 9,229.38 points

Paris - CAC 40: DOWN 0.4 percent at 7,792.90

Frankfurt - DAX: DOWN 0.6 percent at 23,520.50

Tokyo - Nikkei 225: UP 0.3 percent at 45,754.93 (close)

Hong Kong - Hang Seng Index: DOWN 0.1 percent at 26,484.68 (close)

Shanghai - Composite: FLAT at 3,853.30 (close)

New York - Dow: FLAT at 46,121.28 (close)

Euro/dollar: UP at $1.1751 from $1.1737 on Wednesday

Pound/dollar: UP at $1.3450 from $1.3445

Dollar/yen: DOWN at 148.78 yen from 148.91 yen

Euro/pound: UP at 87.37 pence from 87.29 pence

Brent North Sea Crude: DOWN 0.3 percent at $68.29 per barrel

West Texas Intermediate: DOWN 0.4 percent at $64.74 per barrel

H.Gerber--VB