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European stock markets steadied Wednesday after big gains the previous session, while European gas prices hit six months highs on supply constraints.
Asian stock markets advanced following European and Wall Street gains Tuesday, thanks to a growing belief the Federal Reserve was finished with hiking US interest rates.
Optimism was boosted also by a report that China is considering a large burst of economic stimulus.
Eyes will now turn to the release of US inflation figures due Wednesday and minutes from the Fed's September policy meeting.
Amid uncertainty caused by the Israel-Hamas crisis, the mood on trading floors has improved after a healthy US jobs report last week and dovish comments from a number of top US monetary policymakers.
European stocks were steadier "following the best session in nearly a year (Tuesday), driven by less hawkish tones from Fed policymakers", noted Victoria Scholar, head of investment at Interactive Investor.
"Slowing sales from (luxury group) LVMH have dragged the (Paris) CAC 40 into the red while Burberry has followed suit, slumping to the bottom of the FTSE 100" in London.
Oil prices retreated after Monday's surge fuelled by Hamas's deadly attack on Israel that sparked fears of a wider conflict in the crude-rich Middle East.
But European gas prices struck 50 euros on geopolitical risks and colder weather Wednesday, the highest level since April. They later fell back to under 48 euros.
All three markets on Wall Street posted another day of gains Tuesday thanks to the more risk-on environment, while the so-called fear gauge hit a two-week low.
"A steady stream of dovish messaging from the Fed is just what the rally doctor ordered," said Stephen Innes at SPI Asset Management.
He added that with 10-year US Treasury yields nearly 25 basis points down from their pre-jobs data level "there is a growing sense we have seen peak rates, but significantly, investors are strongly coming around to the idea that the Fed has finally reached the end of its aggressive rate hike runway".
- Key figures around 1100 GMT -
London - FTSE 100: UP 0.1 percent at 7,635.45 points
Frankfurt - DAX: FLAT at 15,429.59
Paris - CAC 40: DOWN 0.5 percent at 7,124.88
EURO STOXX 50: DOWN 0.3 percent at 4,194.06
Tokyo - Nikkei 225: UP 0.6 percent at 31,936.51 (close)
Hong Kong - Hang Seng Index: UP 1.3 percent at 17,893.10 (close)
Shanghai - Composite: UP 0.1 percent at 3,078.96 (close)
New York - Dow: UP 0.4 percent at 33,739.30 (close)
Euro/dollar: DOWN at $1.0603 from $1.0609 on Tuesday
Pound/dollar: UP at $1.2285 from $1.2281
Dollar/yen: UP at 148.69 yen from 148.68 yen
Euro/pound: DOWN at 86.26 pence from 86.32 pence
Brent North Sea crude: DOWN 0.3 percent at $87.36 per barrel
West Texas Intermediate: DOWN 0.4 percent at $85.59 per barrel
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