Portugal Colonial - Stock markets mixed, oil prices drop

Wall Street steadied Tuesday following its recent record-breaking run higher.

"There are some big US earnings releases later today, including Boeing and Tesla, who will report earnings once the US market closes," noted Kathleen Brooks, research director at trading group XTB.

"These will be watched closely to see if any positive earnings surprises can boost the US blue chip stock market back to its winning ways."

Away from company results, shares in Tokyo Metro rocketed 45 percent in Japan's biggest initial public offering for six years.

Gold struck yet another record high with the precious metal profiting from its haven status as markets struggle to nail down a winner in the upcoming US presidential election and owing to fears of an escalating crisis in the Middle East.

Crude futures slid more than one percent having shot higher Tuesday on an indicator pointing to increased demand in China which is taking measures to stimulate its flagging economy, the world's second biggest after the United States.

With the US economy in rude health, bets on another bumper cut to interest rates at the Federal Reserve's next meeting have dwindled, supporting the dollar and especially against the yen on Wednesday.

It comes as markets eye a possible Donald Trump victory in next month's presidential polls.

"Investors are navigating a tangled web of geopolitical tensions in the Middle East, a Federal Reserve turning out less dovish than expected, and the sudden reawakening of the 'Trump Trade'," said independent analyst Stephen Innes.

The Trump Trade describes investors acting in expectation of the economic and political policies of a potential second Trump administration.

"The latter has shaken the bond market, forcing some bond traders to pull their heads out of the sand as real jitters emerge about the fiscal landscape post-election."

US bond yields are at their highest since July, with analysts arguing that a Trump win could see a renewed rise to inflation as the former president favours tax cuts.

- Key figures around 1015 GMT -

London - FTSE 100: DOWN 0.3 percent at 8,286.08 points

Paris - CAC 40: DOWN 0.5 percent at 7,499.73

Frankfurt - DAX: FLAT at 19,419.64

Tokyo - Nikkei 225: DOWN 0.8 percent at 38,104.86 (close)

Hong Kong - Hang Seng Index: UP 1.3 percent at 20,760.15 (close)

Shanghai - Composite: UP 0.5 percent at 3,302.80 (close)

New York - Dow: FLAT at 42,924.89 (close)

Euro/dollar: DOWN at $1.0785 from $1.0800 on Tuesday

Pound/dollar: UP at $1.2978 from $1.2977

Dollar/yen: UP at 152.67 yen from 151.02 yen

Euro/pound: DOWN at 83.07 pence from 83.14 pence

West Texas Intermediate: DOWN 1.2 percent at $70.85 per barrel

Brent North Sea Crude: DOWN 1.2 percent at $75.13 per barrel

A.P.Maia--PC