LONDON: Stock markets fell Thursday, hit by concerns about an uncertain global economic outlook as disappointing company results added to lingering concerns about the China-US trade war.

With an expected US Federal Reserve interest rate cut already priced in and few other catalysts to drive buying, analysts said investors were cashing out.

The dollar was mixed Thursday, while the pound recovered from lows struck this week despite the UK forecasting a recession in event of a no-deal Brexit.

Britain will slide into a year-long recession should it leave the European Union without a deal with Brussels, the government's official forecaster said Thursday.

Share price losses in much of Europe and Asia on Thursday meanwhile followed a negative lead from Wall Street overnight.

Netflix shares plunged in after-hours trade Wednesday after its quarterly update showed weaker-than-expected subscriber growth for the streaming television sector leader.

"We're facing another day of negative stock markets on Thursday, as earnings season gets off to the tough start that many anticipated," said Craig Erlam, analyst at Oanda trading group.

"Netflix became the latest company... to face an investor backlash as subscribers rose at a slower rate than expected and significantly disappointed in its home market.

"While the company attributed this to price hikes, the increasing competition in the area is a major cause of concern for investors who have fled in numbers (at) the first excuse, it seems."

Tokyo led stock market losses Thursday, sinking two percent as it was hit by a stronger yen and data showing another drop in exports as Japan feels the impact of falling demand and global trade uncertainty.

Energy firms tracked their US counterparts lower following another steep drop in oil prices Wednesday that came after government data showing a pick-up in US gasoline inventories.

The figures represent the weakest demand in five years, analysts said.

"Gasoline consumption is painfully weak given US consumers are in peak driving season, which will be invariably seen as the Grim Reaper of sorts," said Stephen Innes at Vanguard Markets.

"If we put this data set in the context of slowing China second-quarter GDP, where consumption was the most significant drag, the numbers do suggest that the global economic slowdown is being echoed through weaker global demand data. Definitely a bearish signal for oil demand."

Oil prices were slightly firmer Thursday after the sharp sell-off Wednesday. —AFP