San Francisco Frontiers - Stocks mostly retreat, pound drops

Oil prices also dropped, failing to power ahead after OPEC and other major producers led by Russia decided to slash output by two million barrels per day.

The cut, the biggest since the pandemic struck, was viewed by traders as an attempt to boost prices.

The Kremlin on Thursday said the OPEC+ decision was designed to stabilise global oil markets.

And Washington said it was a concession to Moscow. The United States has been lobbying to hold down fuel prices and isolate Russia over its Ukraine aggression.

The European Union has proposed introducing a price cap on Russian oil as part of new sanctions over Ukraine.

Moscow has said a price cap on its oil would have a "detrimental effect" on global markets and warned it would not supply crude to countries that introduce it.

Shares in Shell slid about 4.5 percent in Thursday trading after the British energy giant revealed that its third-quarter profit would be hit by a slump in refining margins.

"Shell enjoyed record profits in the first and second quarter spurred by a surge in underlying oil and gas prices following Russia's invasion of Ukraine," noted Victoria Scholar, head of investment at Interactive Investor.

"However, since June, oil has posted four consecutive months of declines, with Brent crude down by around 25 percent."

Scholar said Shell was "grappling with a dysfunctional and volatile gas market as well as expectations of softening oil demand, particularly from China as the global economy cools".

- Awaiting US jobs -

Markets remained on guard over the economic outlook awaiting the release of US non-farm payroll jobs Friday.

The pound was down about half-a-percent against the dollar after Fitch ratings agency lowered the outlook for British debt to negative from stable.

This after the government of new Prime Minister Liz Truss recently announced a budget packed with debt-fuelled tax cuts.

Ahead of the downgrade Wednesday, sterling had plunged more than two percent after Truss failed to reassure investors with a speech at her Conservative party conference.

The pound, however, has recovered since reaching a record-low close to parity against the dollar at the end of September.

- Key figures around 1100 GMT -

London - FTSE 100: DOWN 0.6 percent at 7,008.78 points

Frankfurt - DAX: DOWN 0.3 percent at 12,484.16

Paris - CAC 40: DOWN 0.5 percent at 5,957.14

EURO STOXX 50: DOWN 0.3 percent at 3,438.49

Tokyo - Nikkei 225: UP 0.7 percent at 27,311.30 (close)

Hong Kong - Hang Seng Index: DOWN 0.4 percent at 18,012.15 (close)

Shanghai - Composite: Closed for a holiday

New York - Dow: DOWN 0.1 percent at 30,273.87 (close)

Pound/dollar: DOWN at $1.1263 from $1.1326 on Wednesday

Euro/dollar: DOWN at $0.9887 from $0.9889

Euro/pound: UP at 87.72 pence from 87.29 pence

Dollar/yen: UP at 144.75 yen from 144.59 yen

Brent North Sea crude: DOWN 0.3 percent at $93.07 per barrel

West Texas Intermediate: DOWN 0.5 percent at $87.32 per barrel

Z.Sanchez--SFF