World stocks pause for breath after flirting with records

Global stock markets took a breather on Tuesday, consolidating strong recent gains as political uncertainty weighed on Europe and oil prices sagged, dealers said.

Oil futures set new 2017 lows on persistent oversupply worries, pushing down energy stocks in equity markets.

London shares failed to benefit from a weaker pound after Bank of England governor Mark Carney poured cold water on raising interest rates any time soon and analysts speculated on how tough Brexit terms will be after negotiations on Britain's departure from the EU got underway.

"The FTSE 100 erased early forex-induced gains by the afternoon when energy sector shares slumped alongside the price of oil," said Jasper Lawler, an analyst with London Capital Group.

Barclays shares edged lower after Britain's Serious Fraud Office said it had charged the UK banking group and a former chief executive with fraud linked to funding from Qatar.

European bourses had enjoyed gains on Monday and US equities ended at records as traders also cheered a strong victory for French President Emmanuel Macron's centrist party in parliamentary elections.

"European equities are mixed in afternoon action, with Brexit talks in focus after negotiations officially began yesterday in Brussels," said analysts at the Charles Schwab brokerage.

Investors were also starting to worry about upcoming elections in Germany and Italy, they said.

- Still optimistic -

Frankfurt's DAX slipped back after setting a new record in morning trading, but analysts said the upward momentum may well resume soon.

"The size and breadth of yesterday's bounce, which took hold across European, UK and US indices, suggests that we are in the midst of another sustained move higher," IG analyst Chris Beauchamp said.

Wall Street was a few points lower approaching midday in New York, coming out of the rally mode that saw the Dow and S&P 500 finishing at records Monday as Apple, Facebook and other tech shares posted strong gains.

The technology sector sent Tokyo stocks spiking higher Tuesday, buoyed also as the dollar extended gains against the yen on fresh indications the Federal Reserve will lift interest rates again this year.

However, most other regional Asian markets struggled after Monday's healthy gains.

Tokyo stocks ended 0.8 percent higher, with exporters key winners thanks to the weaker yen, while tech firms bounced after two weeks of sharp losses.

However, airbag maker Takata plummeted 20 percent, meaning it has lost a third of its value in just two days following reports it will file for bankruptcy protection and sell its assets to a US company.

Japan's Nikkei business daily said last week the company, with liabilities exceeding $9 billion, would make a formal decision about the filing at a board meeting this month.

Other major markets struggled, though. Hong Kong lost 0.3 percent, Sydney fell 0.8 percent and Seoul gave up 0.1 percent.

- Key figures around 1535 GMT -

London - FTSE 100: DOWN 0.7 percent at 7,472.71 points (close)

Paris - CAC 40: DOWN 0.3 percent at 5,293.65 (close)

Frankfurt - DAX 30: DOWN 0.6 percent at 12,814.79 (close)

EURO STOXX 50: DOWN 0.5 percent at 3,560.65

New York - Dow: DOWN 0.1 percent at 21,516.70

Tokyo - Nikkei 225: UP 0.8 percent at 20,230.41 (close)

Hong Kong - Hang Seng: DOWN 0.3 percent at 25,843.04 (close)

Shanghai - Composite: DOWN 0.8 percent at 5,757.30 (close)

Euro/dollar: DOWN at $1.1124 from $1.1148 at 2100 GMT on Monday

Pound/dollar: DOWN at $1.2622 from $1.2737

Dollar/yen: UP at 111.59 yen from 111.52 yen

Oil - Brent North Sea: DOWN $1.26 at $45.65 per barrel

Oil - West Texas Intermediate: DOWN $1.25 at $43.18

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