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World stock markets gyrated Tuesday in choppy trade, with sentiment hampered by economic and geopolitical fears ahead of this week's eurozone interest rate decision.
Volatile US Treasury yields had affected Monday trading on Wall Street where some indexes rebounded after a sluggish start but the S&P 500 suffered its lowest close since May.
That uncertainty transferred to the Asian trading day with both Hong Kong and Tokyo trading down before the Nikkei 225 staged a late recovery at the close while the Hang Seng Index fell.
In Europe, Frankfurt and Paris stocks rose before Thursday's European Central Bank rate decision, but London slid on a survey showing shrinking private sector business activity.
The ECB has hiked its key rates 10 straight times since July last year to tame surging inflation, although policymakers are expected to pause the tightening campaign this week.
- 'Apprehension and anxiety' -
"Trading has been very choppy at the start of the week -- there's clearly a lot of apprehension and anxiety in the markets which is keeping investors on their toes," OANDA analyst Craig Erlam told AFP.
"This week, we have the ECB, big US tech earnings and inflation figures which may be playing a role. Events in Israel and Gaza are also a huge source of uncertainty which appears to be contributing to the mood."
The rising US bond yield has meanwhile increased worries that Federal Reserve interest rates will stay higher for longer, denting the growth outlook.
After shares fell for the better part of the day, late bargain-hunting saw Tokyo end in the green.
Seoul, Taipei, Jakarta, Singapore and Sydney also found themselves in positive territory.
But these concerns, as well as an upcoming report on third-quarter US growth and September personal income and spending that includes key inflation data, weighed on Hong Kong which ended down 1.1 percent.
The yield on the 10-year US Treasury note had topped five percent for the first time in 16 years on Monday but moved lower later in the day.
Oil rebounded somewhat on Tuesday, after taking a hammering on Monday on supply fears linked to violence in the crude-rich Middle East.
While markets see-sawed, bitcoin crossed $35,000 for the first time since May last year.
The surge was caused by "growing exhilaration among investors regarding the potential approval of a bitcoin exchange-traded fund", said Stephen Innes of SPI Asset Management.
- Key figures around 1045 GMT -
London - FTSE 100: DOWN 0.1 percent at 7,365.71 points
Frankfurt - DAX: UP 0.3 percent at 14,841.97
Paris - CAC 40: UP 0.6 percent at 6,892.31
EURO STOXX 50: UP 0.5 percent at 4,062.65
Hong Kong - Hang Seng Index: DOWN 1.1 percent at 16,991.53 (close)
Tokyo - Nikkei 225: UP 0.2 percent at 31,062.35 (close)
Shanghai - Composite: UP 0.8 percent at 2,962.24 (close)
New York - Dow: DOWN 0.6 percent at 32,936.41 (close)
Euro/dollar: DOWN at $1.0632 from $1.0644 on Monday
Pound/dollar: DOWN at $1.2224 from $1.2248
Dollar/yen: UP at 149.75 yen from 149.63 yen
Euro/pound: UP at 86.97 pence from 86.90 pence
Brent North Sea crude: UP 0.4 percent at $90.22 per barrel
West Texas Intermediate: UP 0.4 percent at $85.84 per barrel
C.Rojas--TFWP