European markets creep higher amid uncertainty

Europe's main stock markets rose Thursday in tentative trading as growing concerns over Greece and looming elections in France and Germany gnawed at sentiment.

"European markets have traded sideways... as investors look for direction in an uncertain environment," noted CMC Markets analyst Michael Hewson.

"Matters are being muddied by concerns of a re-escalation in the Greek debt crisis, in amongst the upcoming European election concerns around potential political upheavals in Germany and France."

Most Asian indices also tacked higher but markets remain cautious about the global outlook, despite another record close on Wall Street overnight.

The top gainer in Paris was French bank Societe Generale, whose shares won almost three percent after posting better-than-expected net profits for 2016.

Profits after tax nevertheless still slid 3.2 percent to 3.87 billion euros ($4.13 billion), hit by accounting expenses and losses arising from the sale of its Croatian subsidiary, SocGen said in a statement.

World markets had wavered Wednesday as increasing uncertainty about France's political outlook and fears of another debt crisis brewing in Greece sent yields on European government debt higher.

- IMF re-ignites Greek woes -

Greek crisis worries were ignited this week after the International Monetary Fund warned the country would likely not reach targets prescribed for it to qualify for bailout cash.

Meanwhile, the uncertainty that has tainted trading floors for weeks continues to weigh as US President Donald Trump appears to press on with a protectionist agenda but no details on his pledge to bolster the US economy.

The dollar has been a major casualty as dealers withdraw initial bets that his big-spending plans would stoke US inflation, and in turn, interest rates. The greenback has fallen around five percent from this year's highs against the yen.

On Thursday the US unit was sitting around 112 yen, having fallen below that level for the first time since November.

However, the dollar remains buoyed against the euro as the rise of populists ahead of elections this year in France, Germany, the Netherlands and Italy fuel worries about the future of the European Union. Added to that are renewed Greek jitters.

In New York the Nasdaq ended at a record high for the second successive day, while the Dow closed above 20,000 despite ending slightly lower.

But while US markets are pushing on, Asian dealers are more concerned about the new US president's anti-globalisation rhetoric, which has fuelled fears of a trade war.

Investors will be closely watching this weekend's meeting between Trump and his Japanese counterpart Shinzo Abe in which they will discuss trade and other issues.

- Key figures around 1150 GMT -

London - FTSE 100: UP 0.1 percent at 7,198.80 points

Frankfurt - DAX 30: UP 0.4 percent at 11,586

Paris - CAC 40: UP 0.6 percent at 4,794.90

EURO STOXX 50: UP 0.6 percent at 3,256.40

Tokyo - Nikkei 225: DOWN 0.5 percent at 18,907.67 (close)

Hong Kong - Hang Seng: UP 0.2 percent at 23,525.14 (close)

Shanghai - Composite: UP 0.5 percent at 3,183.18 (close)

New York - Dow: DOWN 0.2 percent at 20,054.34 (close)

Euro/dollar: UP at $1.0697 from $1.0696

Pound/dollar: UP at $1.2558 from $1.2541

Dollar/yen: UP at 112.24 yen from 111.95 yen

Oil - West Texas Intermediate: UP 47 cents at $52.81 per barrel

Oil - Brent North Sea: UP 56 cents at $55.68

Source :AFP