Volkswacht Bodensee - European shares sag after ECB as Nasdaq rallies

US wholesale inflation rose by 0.2 percent in March, a bit less than expected. However, on an annual level the index for final demand increased 2.1 percent for the 12 months ending in March -- its highest level since April 2023.

US indices spent most of the morning in the red, but picked up momentum as the session progressed, with Nasdaq ending 1.7 percent higher.

Tom Cahill of Ventura Wealth Management said the equity gains were reflective of investor "relief" that the inflation report "wasn't worse than expected" after Wednesday's consumer price report sent stocks tumbling.

The European Central Bank held interest rates steady, as expected, but said the slowing rate of price increases in Europe could open the door to easing monetary policy, raising hopes of a first cut in June.

That helped eurozone stocks pull higher, but they failed to hold onto gains and ended the session lower.

In an update, the ECB said that if inflation in the eurozone keeps falling towards its 2.0 percent target then rate cuts would be appropriate. The next update in its inflation forecast is due for its June meeting.

"The ECB's decision to update its guidance suggests that an interest rate cut at the next meeting in June is very likely," said Jack Allen-Reynolds, deputy chief eurozone economist at Capital Economics.

World oil prices sagged, taking Brent crude futures below $90 per barrel although simmering tensions in the Middle East limited losses and kept prices near a six-month high.

Kathleen Brooks, research director at XTB, pointed to oil prices as a source of frustration for central bankers looking to lower interest rates.

"What unifies the ECB, the Fed and the BOE is the potential for the oil price to get to $100, triggering another uptick in inflation," she said.

The dollar has meanwhile surged to 153.33 yen, the strongest since 1990, as chances for US rate cuts diminish.

Tokyo authorities have said they would keep their options open on supporting the unit.

- Key figures around 2030 GMT -

New York - Dow: FLAT at percent at 38,459.08 (close)

New York - S&P 500: UP 0.7 percent at 5,199.06 (close)

New York - Nasdaq Composite: UP 1.7 percent at 16,442.20 (close)

London - FTSE 100: DOWN 0.5 percent at 7,923.80 (close)

Paris - CAC 40: DOWN 0.3 percent at 8,023.74 (close)

Frankfurt - DAX: DOWN 0.8 percent at 17,954.48 (close)

EURO STOXX 50: DOWN 0.7 percent at 4,966.68 (close)

Tokyo - Nikkei 225: DOWN 0.4 percent at 39,442.63 (close)

Hong Kong - Hang Seng Index: DOWN 0.3 percent at 17,095.03 (close)

Shanghai - Composite: UP 0.2 percent at 3,034.25 (close)

Dollar/yen: UP at 153.25 yen from 153.16 yen on Wednesday

Euro/dollar: DOWN at $1.0730 from $1.0743

Pound/dollar: UP at $1.2556 from $1.2540

Euro/pound: DOWN at 85.43 pence from 85.66 pence

Brent North Sea Crude: DOWN 0.8 percent at $89.74 per barrel

West Texas Intermediate: DOWN 1.4 percent at $85.02 per barrel

burs-jmb/mdl

L.Maurer--VB