Stock markets diverge awaiting Fed

World stock markets diverged on Wednesday as investors awaited a US Federal Reserve meeting and digested US tech giant Apple's first-ever drop in iPhone sales.

Asian markets took a knock, with Apple's suppliers hit, and US stocks also fell moderately in early trades, with shares in the company sharply lower a day after the earnings release.

In Europe, London was up after an earlier drift as official data showed British economic growth slowing in the first quarter.

The OECD also warned Britons would be financially worse off if they voted to leave the European Union in June.

By mid afternoon, London's benchmark FTSE 100 index was 0.4 percent higher, while Frankfurt and Paris were both slightly higher too.

The euro climbed against the dollar.

"Coming in a tad higher than expected at 0.4 percent, compared to the 0.6 percent seen in the final quarter of 2015, the UK's latest GDP reading was nevertheless a disappointment, with enough evidence to suggest that the current Brexit fears are having a material effect on the country's growth," said Connor Campbell, analyst at Spreadex trading group.

The OECD on Wednesday became the latest international organisation to urge Britain to stay in the European Union.

- Rate decisions -

Across the Atlantic, the US central bank wraps up its meeting later Wednesday with a statement that could shed light on the future path of American interest rates.

After the turmoil across world markets earlier this year, the Fed has lowered its forecasts for borrowing costs in 2016, saying it will closely watch overseas developments before making a move.

Sentiment was meanwhile dampened by disappointing earnings news from US tech giant Apple, dealers said.

Apple said Tuesday that waning demand for its popular iPhone handset led to the firm's first dip in revenue since 2003 and was likely to continue this year as a growth slowdown in China drags on that crucial market.

Apple shares sank 7.2 percent Wednesday after its fiscal second quarter earnings report released late Tuesday showed a fall in profits and the first drop in quarterly revenues since 2003.

Separately, Twitter shares dived 16.4 percent as growth in regular users appeared to stall, according to its first quarter earnings report.

"More disappointing results from US tech... knocked sentiment in Asia overnight and offset the positive US close and a rebound in Chinese industrial profits," noted Mike van Dulken, head of research at traders Accendo Markets.

Tokyo stocks fell as Japan's corporate earnings season got off to a shaky start, while traders awaited also a monetary policy decision from the Bank of Japan.

The BoJ's two-day meeting, which ends Thursday, is in focus with policymakers widely expected to unleash more stimulus after deadly earthquakes struck earlier this month.

- Key figures around 1430 GMT -

London - FTSE 100: UP 0.4 percent at 6,310.76 points

Frankfurt - DAX 30: UP 0.6 percent at 10,315.80

Paris - CAC 40: UP 0.6 percent at 4,560.03

EURO STOXX 50: UP 0.4 percent at 3,133.24

Tokyo - Nikkei 225: DOWN 0.4 percent at 17,290.49 (close)

Shanghai - Composite: DOWN 0.4 percent at 2,953.67 (close)

Hong Kong - Hang Seng: DOWN 0.2 percent at 21,361.60 (close)

New York - Dow: DOWN 0.2 percent at 17,954.23

Euro/dollar: UP at $1.1324 from $1.1298 Tuesday

Dollar/yen: DOWN at 111.21 yen from 111.31 yen