San Francisco Frontiers - Global stocks mostly fall as US rally shows signs of fatigue

Crude oil fell sharply early in the session amid hopes for a peace deal that ends the strait disruption. But oil prices later cut losses.

The benchmark international oil contract Brent Crude finished just above $100 at $100.06 a barrel, down 1.2 percent.

Major US indices were in positive territory early in the day, but finished lower. Both the S&P 500 and Nasdaq retreated from records.

"I just think the market is a little tired here after a pretty extensive run since the end of March," said Tom Cahill of Ventura Wealth Management.

"There are a lot of bits of information coming out with reference to what's going on between Iran and the United States," Cahill said. "So I think the market right now is more focused on that than anything else."

Earlier, European stock markets declined after big gains the previous session, while leading Asian markets climbed.

Tokyo soared 5.6 percent, which largely reflected resumption of trading in Japan after public holidays this week.

"The wild streak of enthusiasm which hit markets amid hopes for a major de-escalation in the Iran conflict is tempering," noted Susannah Streeter, chief investment strategist at Wealth Club.

"There's a realization that there are more hurdles to climb for a longer-term resolution to be agreed, even though Iran is reported to be studying a US peace proposal aimed at formally ending the conflict."

US President Donald Trump said an agreement could be near after what he called positive talks. Iran said it would pass on its latest position to mediator Pakistan.

The war, launched by the United States and Israel in late February, has seen Iran respond with attacks across the Middle East and impose a chokehold on the Strait of Hormuz, the gateway to the Gulf oil and gas industries and a strategic trade route.

Norway's central bank on Thursday hiked its guiding rate by a quarter point to 4.25 percent, citing a risk that the war in the Middle East could worsen already elevated inflation.

"Inflation is too high and has run above target for several years," Norges Bank governor Ida Wolden Bache said in a statement.

Elsewhere, Emirates Group on Thursday announced a three-percent rise in annual profits to $5.7 billion despite severe disruption to flights owing to the war.

Whirlpool fell 11.9 percent as it reported an $85 million loss on lower sales, saying that the Iran war "resulted in recession-level industry decline in the US as consumer confidence collapsed in late February and March."

Ventura's Cahill said more companies could face such pressures due to spiking gasoline prices that have left consumers strapped for cash.

"The consumer continues to feel the pinch of higher prices," he said.

- Key figures at around 2015 GMT -

Brent North Sea Crude: DOWN 1.2 percent at $100.06 a barrel

West Texas Intermediate: DOWN 0.3 percent at $94.81 a barrel

New York - DOW: DOWN 0.6 percent at 49,596.97 (close)

New York - S&P 500: DOWN 0.4 percent at 7,337.11 (close)

New York - Nasdaq Composite: DOWN 0.1 percent at 25,806.20 (close)

London - FTSE 100: DOWN 1.6 percent at 10,276.95 (close)

Paris - CAC 40: DOWN 1.2 percent at 8,202.08 (close)

Frankfurt - DAX: DOWN 1.0 percent at 24,663.61 (close)

Tokyo - Nikkei 225: UP 5.6 percent at 62,833.84 (close)

Hong Kong - Hang Seng Index: UP 1.6 percent at 26,626.28 (close)

Shanghai - Composite: UP 0.5 percent at 4,180.09 (close)

Euro/dollar: DOWN at $1.1746 from $1.1748 on Wednesday

Pound/dollar: DOWN at $1.3576 from $1.3593

Dollar/yen: UP at 156.83 yen from 156.39 yen

Euro/pound: UP at 86.52 pence from 86.42 yen

burs-jmb/dw

R.Moore--SFF