Global stocks mixed ahead of Fed, ECB decisions

Global stocks were mixed on Tuesday as markets began looking past an historic US-North Korea summit towards major central bank decisions in the coming days.

Markets moved little following the meeting between US President Donald Trump and the North Korean leader Kim Jong Un, with some analysts lauding the positive tone of the event but uncertain of whether it would result in significant change.

"The general reaction in the markets has been fairly muted," OANDA analyst Craig Erlam told AFP.

"While the outcome of the summit is generally positive and gives reason for optimism, there may also be an element of skepticism from investors in regards to what denuclearization means, the timescale and whether the deal will be sustained."

Investors fixated on a Federal Reserve decision on Wednesday in which the central bank is likely to hike interest rates, a case strengthened by data showing higher US consumer inflation.

The Fed announcement will be followed by a European Central Bank decision on Thursday that could mark the end of a bond-buying stimulus program.

"We have so many major events for the rest of the week. Most investors are sitting on the sidelines," said Karl Haeling of LBBW.

London and Paris finished modestly lower, while Frankfurt was flat. Earlier, both Tokyo and Hong Kong notched modest gains.

In the US, the Nasdaq finished solidly higher and at a fresh record of 7 703.79 following strong gains by leading technology companies. But the Dow was essentially unchanged.

The British pound was under pressure as British Prime Minister Theresa May avoided a major blow to her Brexit strategy after lawmakers rejected a plan that would have given parliament a veto on the final deal negotiated with Brussels.

However, May's government offered a last-minute compromise to pro-European lawmakers, further illustrating the challenges it faces in shepherding through Brexit.

Oil prices were mixed, with Brent slipping and US benchmark contract West Texas Intermediate rising after OPEC said the oil cartel's production had risen slightly in May.

OPEC and its partners are to meet in Vienna next week to decide on a possible extension of a production cut deal - which crucially includes giant producer Russia - that has been key to the oil price recovery.

The oil market is on high alert ahead of the June 22 meeting, sector analysts reported, saying there were signs that Saudi Arabia and Russia would push for higher production ceilings at the meeting.

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