European stock markets wobbled on Thursday on investor unease over ineffectual EU efforts to resolve a debt crisis gripping Greece.
European markets lost ground "as investors continued to fret over Greece's sovereign debt problems," said City Index analyst Joshua Raymond.
The mining sector came under particular pressure as the dollar firmed against the euro, with the Greek turmoil taking a toll on the single European currency.
The London FTSE 100 index slipped 0.04 per cent, by 2.01 points, to close at 5,642.62 points after having at one point risen to a 20-month high.
The Paris CAC 40 fell 19.71 points, or 0.50 per cent, to 3,938.18 while the Frankfurt Dax lost 11.97 points, or 0.20 per cent, to end the session at 6,012.31 points.
Elsewhere there were losses of 0.40 per cent in Brussels, 0.84 per cent in Madrid and 0.51 per cent in Milan.
Trading was generally lacklustre.
"We remain at a point of indecision, with investors unsure as to whether to build on positions or scale back," Raymond said.
"When this happens the markets tend to drift sideways."
Anxiety over the fate of Greek finances deepened as the European Union groped for common ground on how to ensure that Greece will be able to borrow money on financial markets at rates similar to those paid by its partners.
Clearly dissatisfied with what they see as a tepid EU response thus far, Greek authorities have made it clear they are prepared to go to the International Monetary Fund for help, a potential step that has divided the eurozone.
US stocks were mixed in early trade after fresh government economic data came nearly within expectations.
The Dow Jones Industrial Average was up 0.02 per cent at 10,736.09 at mid-day while the Nasdaq composite had dipped 0.12 per cent to 2,386.27.
The market mostly welcomed Labor Department data showing weekly initial unemployment insurance claims at five-week lows and tame inflation, posing little threat to the Federal Reserve's ultra-low interest rate policy.
The consumer price index, a measure of the average change in prices of goods and services purchased by households, was unchanged in February from a 0.2 per cent rise the previous month, the Labor Department said.
Most analysts had expected a 0.1 per cent rise in February.
"Inflation indicators are subdued at the consumer level, which is certainly lending to the Fed's patience in keeping the fed funds rate at the zero bound," said Briefing.com analyst Patrick O'Hare.
"Similarly, the labour market isn't lighting a fire under the Fed either even if it has stabilised some," he said.
In London the FTSE at one point rose to 5,660.99 points, its highest reading since June 26, 2008, on news that the British public deficit had risen less dramatically in February than had been expected.
But the rise was checked by the dollar-sensitive mining sector, where Vedanta fell 2.35 per cent and Fresnillo 2.05 per cent. A stronger greenback makes dollar-denominated commodities more expensive for buyers using weaker currencies.
In Paris luxury groups LVMH and PPY rose 1.37 and 0.41 per cent respectively on upbeat forecasts for the sector, analysts said.
In Frankfurt industrial giant Siemens shed 0.21 per cent after announcing plans to cut 4,200 jobs by the end of next year as part of a restructuring that will cost up to 500 million euros.
Asian shares succumbed to profit-taking on Thursday as dealers moved to cash in on the previous day's gains after the Japanese and US central banks held interest rates at record lows.
Hopes for an economic recovery lifted regional indexes on Wednesday after the Bank of Japan (BoJ) said it would keep rates at near zero and would double a loan facility available to other banks in order to increase credit.
Tokyo's Nikkei dropped 0.95 per cent to 10,744.03 points and Hong Kong lost 0.25 per cent to 21,220.67.
Shanghai ended 0.14 per cent lower, with concerns that Beijing will tighten credit also weighing on sentiment.
AFP
