San Francisco Frontiers - Eurozone markets climb on Fed outlook; London flat before budget

Sentiment also won a partial boost after Israel and Hamas announced a deal allowing at least 50 hostages and scores of Palestinian prisoners to be freed while offering besieged Gaza residents a four-day truce after weeks of all-out war.

Frankfurt and Paris stocks pushed higher but London flattened as investors awaited a British budget update that will contain measures to boost the nation's ailing economy.

Asian equity indices diverged as traders tracked a tepid lead from Wall Street following meeting minutes showing Fed officials were inclined to keep interest rates elevated for "some time" in order to tame inflation.

Minutes from the Fed's October-November policy meeting showed decision-makers recognised the impact that more than a year of rate hikes has had on inflation -- which has dropped from the four-decade high seen last year -- but were mindful to make sure they got the job done.

Yet many traders remain hopeful that the central bank will opt for a cut at some stage next year.

"With markets heavily focused on the transition from monetary tightening to the timing of the first 2024 rate cut, yesterday's minutes did little to dampen sentiment -- despite their view that rates would remain restrictive for some time yet," said Scope Markets analyst Joshua Mahony.

"With markets currently pricing a 95-percent chance that we have seen the end of the rate-hike cycle, the now commonly-touted stance that the Fed will tighten further if necessary, remains an empty threat unless we see prices take a notable turn upwards."

The upbeat mood has lifted most equities and seen US Treasury yields retreat from 17-year highs, which has in turn pushed the dollar down against other currencies, although it rebounded slightly in Wednesday trading.

All three main indexes on Wall Street ended in the red on Tuesday, with traders starting to wind down ahead of the Thanksgiving holiday.

- Key figures around 1130 GMT -

London - FTSE 100: FLAT at 7,482.35 points

Paris - CAC 40: UP 0.5 percent at 7,265.93

Frankfurt - DAX: UP 0.4 percent at 15,966.36

EURO STOXX 50: UP 0.4 percent at 4,350.44

Tokyo - Nikkei 225: UP 0.3 percent at 33,451.83 (close)

Hong Kong - Hang Seng Index: FLAT at 17,734.60 (close)

Shanghai - Composite: DOWN 0.8 percent at 3,043.61 (close)

New York - DOW: DOWN 0.2 percent at 35,088.29 (close)

Euro/dollar: DOWN at $1.0903 from $1.0911 on Tuesday

Pound/dollar: DOWN at $1.2530 from $1.2539

Dollar/yen: UP at 149.09 yen from 148.39 yen

Euro/pound: UP at 88.44 pence from 88.36 pence

Brent North Sea crude: DOWN 0.2 percent at $81.90 per barrel

West Texas Intermediate: DOWN 0.8 percent at $77.18 per barrel

H.King--SFF