San Francisco Frontiers - Global stocks slid but China stimulus lifts Asia

Traders remain aware that the ongoing crisis in the Middle East could spiral as Israel presses on with a bombing campaign of Gaza after Hamas' deadly attacks on October 7.

"Asian indices... ended the session in the green on hopes that we will see the Chinese push forward with a major fiscal spending plan," said Scope Markets analyst Joshua Mahony.

"European markets remain in uncertain territory, with indices struggling for direction of late," he added on the eve of a eurozone interest rate decision.

Minutes into the session on Wall Street, the Dow stood off 0.2 percent, largely mirroring main European indices, though the tech-heavy NASDAQ was down 1.2 percent after some contrasting tech returns Tuesday with Meta to report later.

Traders were eyeing a rally on Wall Street on a strong set of numbers from big-name firms including Coca-Cola, Verizon and 3M.

Oil prices meanwhile steadied after earlier falls in the week, with Craig Erlam, senior market analyst at OANDA, observing that "Brent and WTI have given back the bulk of the gains that followed Hamas's attack on Israel earlier this month which may suggest traders are less fearful of it turning into a wider conflict that could disrupt supplies."

German business sentiment improved slightly in October, a survey showed Wednesday, but analysts warned the Mideast conflict posed new risks as Europe's top economy struggles to emerge from a downturn amid wider concern as to where the regional tensions are headed and their potential effect on crude and inflation.

- China plan -

In Asia, Hong Kong earlier led gains after China approved a plan to issue 1 trillion yuan ($137 billion) in sovereign bonds to be distributed to local governments to support national disaster prevention and recovery.

The move will lift the fiscal deficit ratio for 2023 to about 3.8 percent of gross domestic product, the official Xinhua news agency said Tuesday, above the three percent usually considered Beijing's limit.

Leaders rarely alter the budget mid-year, but it did happen in 2008 after the Sichuan earthquake and during the Asian financial crisis in the late 1990s.

Bloomberg News reported that President Xi Jinping paid his first known visit to the central bank, indicating the increased focus the government is putting on the economy.

The announcement follows a series of small, targeted measures aimed at lifting the economy, which has struggled to recover from the impact of years of zero-Covid measures.

- Key figures around 1400 GMT -

New York - Dow: DOWN 0.2 percent at 33,084.07 points

London - FTSE 100: FLAT at 7,391.56

Frankfurt - DAX: DOWN 0.5 percent at 14,804.58

Paris - CAC 40: DOWN 0.5 percent at 6,861.36

EURO STOXX 50: DOWN 0.2 percent at 4,056.08

Tokyo - Nikkei 225: UP 0.7 percent at 31,269.92 (close)

Hong Kong - Hang Seng Index: UP 0.6 percent at 17,085.33 (close)

Shanghai - Composite: UP 0.4 percent at 2,974.11 (close)

Euro/dollar: DOWN at $1.0578 from $1.0590 on Tuesday

Dollar/yen: UNCHANGED at 149.91 yen from 149.91 yen

Pound/dollar: DOWN at $1.2128 from $1.2160

Euro/pound: DOWN 0.1 percent at 87.21 pence from 87.89 pence

Brent North Sea crude: UP 0.1 percent at $88.11 per barrel

West Texas Intermediate: DOWN 0.1 percent at $83.68 per barrel

H.Davis--SFF