San Francisco Frontiers - Stock markets mixed, dollar dips before US jobs data

European equity indices mostly fell after Asia's main stock markets closed higher.

"US stock futures are erring on the side of optimism ahead of jobs data," said Derren Nathan, head of equity research at Hargreaves Lansdown.

"Hopes for a rate cut by the Fed next month have improved slightly after American retail sales unexpectedly flatlined in December," he said.

The sales reading Tuesday provided the Fed with room to consider cutting borrowing costs next month, having held in January after three reductions in a row.

However, it also indicated there was unease among American consumers, who are the major driver of growth, and pointed to further weakness in the economy.

Wednesday's jobs data comes after President Donald Trump's top economic adviser Kevin Hassett warned this week of more soft readings.

Traders now see more chance of three rate cuts this year, with two already baked into prices, according to Bloomberg.

- Dollar weakens -

The prospect of more Fed cuts pushed the dollar down against its major peers.

Traders also remain on guard about developments in the tech space as they worry that the hundreds of billions firms have pumped into artificial intelligence may not see any returns for some time.

That was compounded Tuesday after Google's parent Alphabet raised more than $30 billion in debt in less than 24 hours as it looks to ramp up its capabilities.

News that the start-up Altruist Corp had rolled out a tax-strategy tool added to the sense of unease on trading floors, as it fanned concerns that the software will take business from mainstream firms.

In Europe on Wednesday, shares in Heineken climbed 2.1 percent after the Dutch brewer said it would axe 6,000 jobs amid falling beer shipments.

TotalEnergies rose 1.8 percent as the French energy giant announced fresh share buybacks, helping offset news of a 17 percent drop in annual net profit.

Siemens Energy shares jumped 4.6 percent on ballooning profits as AI boosts demand for electricity.

On the downside, Dassault Systemes tumbled more than 19 percent after the French software group posted lower sales than expected.

World crude prices meanwhile rose on fresh Middle East tensions, with Israeli Prime Minister Benjamin Netanyahu expected Wednesday to push Trump to take a tougher stance in nuclear talks with Iran.

- Key figures at around 1100 GMT -

London - FTSE 100: UP 0.5 percent at 10,407.40 points

Paris - CAC 40: DOWN 0.4 percent at 8,298.27

Frankfurt - DAX: DOWN 0.4 percent at 24,897.45

Hong Kong - Hang Seng Index: UP 0.3 percent at 27,266.38 (close)

Shanghai - Composite: UP 0.1 percent at 4,131.98 (close)

Tokyo - Nikkei 225: Closed for a holiday

New York - Dow: UP 0.1 percent at 50,188.14 (close)

Euro/dollar: UP at $1.1925 from $1.1899 on Tuesday

Pound/dollar: UP at $1.3706 from $1.3644

Dollar/yen: DOWN at 153.31 yen from 154.31 yen

Euro/pound: DOWN at 87.00 pence from 87.18 pence

Brent North Sea Crude: UP 1.4 percent at $69.74 per barrel

West Texas Intermediate: UP 1.5 percent at $64.89 per barrel

U.Campbell--SFF