Stock markets fluctuated on Wednesday, with many investors sticking to the sidelines while awaiting clues on US interest rate moves.
Trading volumes were light overall, with the recent pullback in US tech heavyweights spurring caution after their stellar run since April.
Tuesday鈥檚 US tech sell-off was 鈥榮parked by concerns about overexcitement and overvaluations in AI stocks,鈥� said Victoria Scholar, head of investment at Interactive Investor.
Wall Street was mixed at the open on Wednesday, with the tech-heavy Nasdaq extending the previous day鈥檚 losses as shares in AI chip-maker Nvidia, its rival Advanced Micro Devices and software provider Palantir falling further.
Paris was up while Frankfurt fell in midday deals, with European defence stocks extending losses on signs a path may be clearing for Ukraine peace talks.
London鈥檚 FTSE 100 index rose but the pound fell back from earlier highs after UK inflation rose more than expected in July, dampening bets that the Bank of England will cut rates again this year.
All eyes are now on the release later Wednesday of the minutes of the Federal Reserve鈥檚 latest meeting, which could show if more board governors favour more proactive rate cuts.
Fed chief Jerome Powell 鈥� who has resisted president Donald Trump鈥檚 vociferous calls for rate cuts 鈥� will then give a key speech Friday at the annual central bankers conference in Jackson Hole, Wyoming.
Data last week provided a mixed picture of inflation in the United States, making it uncertain if the Fed will lower rates as many investors expect in September 鈥� which could bolster growth in the world鈥檚 biggest economy.
Traders have also been watching a recent diplomatic whirlwind aimed at resolving the war in Ukraine, after President Donald Trump鈥檚 high-stakes meeting with Russian counterpart Vladimir Putin in Alaska.
Eyes are now on potential face-to-face talks between Putin and Ukrainian president Volodymyr Zelensky, who has said he is ready for such a meeting.
Oil prices rose, recovering part of the losses from the previous day, as investors monitored progress on Ukraine peace talks.
In Asia, Tokyo closed down 1.5 per cent after official data showed Japanese exports suffered their steepest drop in more than four years last month as US tariffs weighed.
Hong Kong advanced and Shanghai closed up one per cent.
Hong Kong鈥檚 stock exchange operator posted record half-year revenue, riding a renewed surge in listings and trading activity at the Chinese finance hub.
In company news, shares in mining giant Anglo American fell around 1.5 per cent in London after US group Peabody Energy walked away from a $3.8 billion deal to buy its steelmaking coal business.