Portugal Colonial - Strong Microsoft results lift Nasdaq as most global bourses fall

The main US indices, which had fallen sharply Tuesday, initially recovered a day later following results by Google parent Alphabet and Microsoft that topped expectations.

While the tech-rich Nasdaq advanced 0.5 percent, both the Dow and S&P 500 finished the session lower.

Shares in Microsoft jumped 7.2 percent after it reported quarterly profits of $18.3 billion behind strong contributions from its cloud computing and artificial intelligence offerings.

The surge came despite UK regulators blocking Microsoft's $69-billion takeover of US video game giant Activision Blizzard. Although Microsoft will appeal, the ruling could signal the deal is on the rocks as EU and US regulators have yet to sign off.

Briefing.com analyst Patrick O'Hare said "the overall body of earnings reporting work for the March quarter since yesterday's close has been quite good, yet the overall reaction has been quite subdued."

Investors kept an eye on the embattled First Republic Bank, which ended nearly 30 percent down after another bruising session.

"The concerns about a hard landing (or recession) are deepening and the concerns are largely focused on the banking industry," said Hugh Johnson of Hugh Johnson Economics.

European markets fell while Asian markets turned in a mixed performance following Wall Street losses on Tuesday, with lackluster US consumer data raising concerns about the economic outlook.

"Realization is dawning that more ominous clouds are gathering over the US economy, causing fresh nervousness for investors," noted Susannah Streeter, head of money and markets at Hargreaves Lansdown.

Also weighing on sentiment was the question of interest rates, with Sweden's Riksbank on Wednesday hiking its guiding rate by a half-point to 3.5 percent as it tried to rein in double-digit inflation.

Oil prices, meanwhile, tumbled on worries that an economic slowdown will pinch demand, even as weekly US data pointed to strong gasoline demand.

The US benchmark West Texas Intermediate finished at $74.30 a barrel, down 3.6 percent.

"The economy is weakening but it isn't falling off a cliff, so we shouldn't be seeing oil trade near the low $70s," said Oanda's Edward Moya.

"China's recovery is not materializing, and US demand is weaker, so $100 oil won't be happening," he said.

- Key figures around 2150 GMT -

New York - Dow: DOWN 0.7 percent at 33,301.87 (close)

New York - S&P 500: DOWN 0.4 percent at 4,055.99 (close)

New York - Nasdaq: UP 0.5 percent at 11,854.35 (close)

London - FTSE 100: DOWN 0.5 percent at 7,852.64 (close)

Frankfurt - DAX 40: DOWN 0.5 percent at 15,795.73 (close)

Paris - CAC 40: DOWN 0.9 percent at 7,466.66 (close)

EURO STOXX 50: DOWN 0.7 percent at 4,347.71 (close)

Hong Kong - Hang Seng Index: UP 0.7 percent at 19,757.27 (close)

Shanghai - Composite: FLAT at 3,264.10 (close)

Tokyo - Nikkei 225: DOWN 0.7 percent at 28,416.47 (close)

Euro/dollar: UP at $1.1044 from $1.0973 on Tuesday

Pound/dollar: UP at $1.2468 from $1.2409

Dollar/yen: DOWN at 133.67 yen from 133.76 yen

Euro/pound: DOWN at 88.55 pence from 89.19 pence

Brent North Sea crude: DOWN 3.8 percent at $77.69 per barrel

West Texas Intermediate: DOWN 3.6 percent at $74.30 per barrel

burs-jmb/bys

Nogueira--PC