World stocks drop as Wall Street runs out of steam

World stocks posted losses Thursday as investors cashed in on recent gains, rattled by Wall Street poised to snap out of its record-breaking run and the return of Trump-related worries.

Traders are increasingly nervous as they await details of US President Donald Trump's announced tax plans, analysts said.

"Actions speak louder than words and investors still need full clarity on the fiscal campaign promises before pricing in further premiums into the equity markets," said Jameel Ahmad at FXTM.

One analyst even suspected that Trump himself may have brought on the correction by taking credit for US stocks' record highs on Twitter.

"Trump tweeted about the confidence and optimism behind the new high in the stock market on Thursday, perhaps incidentally calling a short-term top in doing so," said Jasper Lawler, analyst at London Capital Group.

The dollar also pulled lower as investors continued to speculate on the timing of the Federal Reserve's next interest rate move, with Thursday's batch of economic data offering little guidance.

- 'Barking' -

"Perhaps investors are concerned that the Trump administration will turn their attention back towards barking at the strength of their currency," said Ahmad.

Global equities had risen Wednesday as investors reacted to fresh indications that the US Federal Reserve could decide to lift interest rates as early as March.

But approaching midday Thursday in New York, Wall Street appeared distinctly reluctant to extend the record-breaking run which lasted for five straight sessions.

US jobless claims, although still at low levels, showed an increase in new benefits claims. New US home construction slowed in January.

Neither figure added much clarity to the debate on the timing of the next Fed rate hike.

- Air France lift-off -

London was hampered by a number of companies going ex-dividend, meaning that the stock no longer carries the right to the most recently declared shareholder payout.

Among other European equities, Air France-KLM shares surged nearly 13 percent after the company reported rising profits for 2016.

Nestle dropped one percent after the Swiss food giant expressed caution on the outlook for its performance this year.

Oil rebounded in early Europe after Russia said it would fully comply with a crude output cut agreement by the end of April.

Talk that OPEC may extend current cuts also lifted sentiment briefly, but the oil price then reversed the trend to post losses by the end of the afternoon.

Oil investors are torn between optimism on possible further production cuts and fears that increased US crude drilling will undermine recent price rises, dealers said.

- Key figures around 1645 GMT -

London - FTSE 100: DOWN 0.3 percent at 7,277.92 points (close)

Frankfurt - DAX 30: DOWN 0.3 percent at 11,757.24 (close)

Paris - CAC 40: DOWN 0.5 percent at 4,899.46 (close)

EURO STOXX 50: DOWN 0.4 percent at 3,311.04 (close)

New York - Dow: DOWN 0.1 percent at 20,598.13

Tokyo - Nikkei 225: DOWN 0.5 percent at 19,347.53 (close)

Hong Kong - Hang Seng: UP 0.5 percent at 24,107.70 (close)

Shanghai - Composite: UP 0.5 percent at 3,229.62 (close)

Euro/dollar: UP at $1.0664 from $1.0601

Pound/dollar: UP at $1.2488 from $1.2461

Dollar/yen: DOWN at 113.33 yen from 114.16 yen

Oil - Brent North Sea: DOWN 46 cents at $55.29 per barrel

Oil - West Texas Intermediate: DOWN 21 cents at $52.90