Apple, commodity strains weigh on equities

World stock markets mostly retreated Wednesday, dragged lower by mining shares and oil prices, while Apple weighed on Wall Street, traders said.

After declines for the bulk of Asia's stock markets, Europe's top indices closed down, as dealers also digested a slew of company earnings reports in Europe and the US.

One of the heaviest fallers on London's benchmark FTSE 100 index was miner Antofagasta, which shed 3.2 percent to close at 523 pence.

David Cheetham, market analyst at XTB trading group, said shares in the copper mining company fell "after the release of a downbeat production update".

"The release warned that the firm's output will be close to the lower end of its predicted range at the end of the year and has clearly worried investors."

In Asian trading hours, energy firms were hit by sinking oil prices as fears that a planned output cut by major producers will unravel were fanned by a report Russia would not take part.

Crude had been in the ascendancy since last month when the Organization of the Petroleum Exporting Countries, and later Moscow, agreed to output cuts in a bid to support prices.

But oil prices fell more than one percent Tuesday as the Russia-based Interfax news agency said the country's envoy at OPEC, Vladimir Voronkov, had said output cuts are not "an option for us".

Oil prices fell again Wednesday, with better-than-expected US energy inventory data proving insufficient to reassure markets.

The report comes days after key OPEC member Iraq said it should be exempted from the final deal as it was fighting a war against the Islamic State group.

"They say talk is cheap and OPEC appears to be approaching the limits of its ability to jawbone oil higher without something concrete to put on the table," Jeffrey Halley, senior market analyst at OANDA, said in a note.

US equities recovered after falling at opening, when Apple -- the world's biggest company by market capitalisation -- fell 4.0 percent after posting an earnings decline due to falling iPhone sales.

Apple earnings plunged 19 percent in the fourth quarter to $9 billion, overshadowing better-than-expected results from Boeing and food giant Mondelez.

"Domestic stocks are recovering from an early drop, with crude oil relinquishing solid losses following bullish government oil inventory data, while services sector activity improved more than expected," analysts at Charles Schwab said in a note to investors.

"However, Dow member Apple's guidance for the holiday quarter is weighing on its shares, and a read on new home sales missed expectations," they added.

- Key figures around 1550 GMT -

London - FTSE 100: DOWN 0.9 percent at 6,958.09 points (close)

Frankfurt - DAX 30: DOWN 0.4 percent at 10,709.68 (close)

Paris - CAC 40: DOWN 0.1 percent at 4,534.59 (close)

EURO STOXX 50: DOWN 0.2 percent at 3,081.03

New York - Dow: UP 0.3 percent at 18,216.25

Tokyo - Nikkei 225: UP 0.2 percent at 17,391.84 (close)

Hong Kong - Hang Seng: DOWN 1.0 percent at 23,325.43 (close)

Shanghai - Composite: DOWN 0.5 percent at 3,116.31 (close)

Euro/dollar: UP to $1.0913 from $1.0887 Tuesday

Dollar/yen: UP to 104.42 yen from 104.22 yen

Pound/dollar: UP to $1.2232 from $1.2186

Euro/pound: DOWN to 89.23 pence from 89.34 pence

Oil - West Texas Intermediate: DOWN 47 cents at $49.49 per barrel

Oil - Brent North Sea: DOWN 74 cents at $50.05