Portugal Colonial - Stocks mixed as traders assess recession risk

The yen hit fresh multi-year lows against the dollar and euro with the Bank of Japan refusing to raise interest rates to combat high consumer prices, in contrast to rival central banks.

The OECD on Wednesday warned that the world economy would pay a "hefty price" for Russia's invasion of Ukraine as it slashed its 2022 world growth forecast and said inflation to keep rising.

The Organisation for Economic Co-operation and Development predicted that the world economy would grow three percent this year -- down sharply on its 4.5-percent estimate in December.

"This argument which the market appears to be having with itself, over whether we see a recession... is likely to become a lot clearer over the next week or so, starting with US" inflation data Friday, noted Michael Hewson, chief market analyst at CMC Markets UK.

European stock markets were lower Wednesday approaching the half-way stage and after Asian indices had rallied as China eases Covid lockdown restrictions and is forecast to lift its crackdown on the tech sector.

China's approval of dozens of new video game releases sent shares of some of its biggest tech firms soaring Wednesday.

Global equities have enjoyed some respite in recent weeks from a painful sell-off caused by central bank monetary tightening, in particular by the Federal Reserve.

All eyes are on the release of US inflation data for a clearer idea about the pace of future Fed rate hikes.

India on Wednesday announced a fresh hike of its own, one day after Australia unveiled an increase to borrowing costs twice as big as forecast.

The European Central Bank is Thursday expected to signal an end to its bond-buying, paving the way for an interest rate increase in the eurozone.

"The reality for the economy and probably the stock markets is that aggressive central bank rate hikes are likely to take a sharp bite out of household consumption," said SPI Asset Management's Stephen Innes.

Hungarian inflation has reached double figures for the first time in 20 years, official data showed Wednesday.

High oil prices, a major inflationary contributor, were up more than one percent.

- Key figures at around 1045 GMT -

London - FTSE 100: DOWN 0.4 percent at 7,571.83 points

Frankfurt - DAX: DOWN 0.5 percent at 14,484.59

Paris - CAC 40: DOWN 0.7 percent at 6,456.96

EURO STOXX 50: DOWN 0.3 percent at 3,796.44

Tokyo - Nikkei 225: UP 1.0 percent at 28,234.29 (close)

Hong Kong - Hang Seng Index: UP 2.2 percent at 22,014.59 (close)

Shanghai - Composite: UP 0.7 percent at 3,263.79 (close)

New York - Dow: UP 0.8 percent to 33,180.14 (close)

Dollar/yen: UP at 133.98 yen from 132.62 yen late Tuesday

Euro/dollar: UP at $1.0722 from $1.0715

Pound/dollar: DOWN at $1.2538 from $1.2592

Euro/pound: UP at 85.51 pence from 85.02 pence

Brent North Sea crude: UP 1.2 percent at $122.02 per barrel

West Texas Intermediate: UP 1.4 percent at $121.03 per barrel

E.Borba--PC