Heraldo de Madrid - Stocks diverge over Trump tariffs, Ukraine ceasefire plan

Analysts said support came from Ukraine endorsing an American proposal for a 30-day ceasefire, which was awaiting a response from Russia.

Chinese stock markets closed lower Wednesday, while Europe's main equity indices made solid gains nearing the half-way stage.

There had been a further equities selloff in New York on Tuesday that saw the Nasdaq extend Monday's four percent dive.

All eyes were also on US inflation data due Wednesday.

"Market volatility is rising as visibility (over tariffs) becomes cloudier by the day," noted Ipek Ozkardeskaya, senior analyst at Swissquote Bank.

The on-off nature of the trade policies has fuelled uncertainty in markets, and has sent the VIX "fear index" of volatility to its highest level since August.

Global markets have endured severe swings this month as Trump looks to ramp up pressure on global partners by imposing or threatening hefty duties on their goods, citing huge trade imbalances.

In the latest move, sweeping 25 percent levies on all US aluminium and steel imports came into effect at midnight in Washington, hitting numerous nations from Brazil to South Korea, as well as the European Union.

Trump had threatened to double those on Canada after Ontario imposed an electricity surcharge on three US states, but he called that off after the province halted the charge.

China and the European Union on Wednesday vowed to strike back and defend their economic interests, moving Washington closer to an all-out trade war with two major partners.

Also in focus Wednesday is the release of key US consumer inflation data, which the Federal Reserve will keep a close eye on as it tries to determine monetary policy in light of the latest moves by Trump.

There is a fear that the tariffs, and plans to slash taxes, regulation and immigration will fan inflation again, forcing the bank to hold borrowing costs for longer or even hike them.

Analysts said high uncertainty in US stocks markets made other regions more attractive as investors seek out stability.

"For years, the US has been the undisputed leader of global markets, fuelled by aggressive fiscal spending, tech dominance, and a strong consumer," said Charu Chanana, chief investment strategist at Saxo.

"But cracks are starting to show. Investors are increasingly looking overseas as concerns mount over US stock valuations, monetary policy, and economic uncertainty."

- Key figures around 1030 GMT -

London - FTSE 100: UP 0.5 percent at 8,536.22 points

Paris - CAC 40: UP 1.1 percent at 8,027.20

Frankfurt - DAX: UP 1.5 percent at 22,652.33

Tokyo - Nikkei 225: UP 0.1 percent at 36,819.09 (close)

Hong Kong - Hang Seng Index: DOWN 0.8 percent at 23,600.31 (close)

Shanghai - Composite: DOWN 0.2 percent at 3,371.92 (close)

New York - Dow: DOWN 1.1 percent at 41,433.48 points (close)

Euro/dollar: UP at $1.0918 from $1.0915 on Tuesday

Pound/dollar: DOWN at $1.2941 from $1.2954

Dollar/yen: UP at 148.69 yen from 147.70 yen

Euro/pound: UP at 84.36 pence from 84.26 pence

Brent North Sea Crude: UP 1.0 percent at $70.29 per barrel

West Texas Intermediate: UP 1.1 percent at $67.00 per barrel

I.Ponce--HdM