LONDON: Stock markets were mixed Friday after a painful few days as traders tracked Delta variant developments, Chinese regulatory crackdowns, disappointing economic data and brewing geopolitical tensions.
Asia's main indices closed out the week higher and European markets were also mostly higher.
Wall Street opened lower, however.
US "markets have appeared to lack conviction near record highs amid uncertainties regarding the Delta variant, global monetary policy tightening timing, fiscal stimulus, and persistent supply-chain challenges, as a typically historically-sluggish September rolls on," said analysts at Charles Schwab brokerage.
On foreign exchange, the euro briefly rose against the dollar and British pound following a report in the Financial Times that the European Central Bank was on course to hike eurozone interest rates in 2023, an outlook later denied by the ECB.
Rising prices as economies emerge from pandemic lockdowns has triggered expectations that central banks will both taper their huge financial stimulus packages and raise interest rates sooner than expected.
The main focus for investors is now the US Federal Reserve's policy meeting next week and whether it will signal by how much and for how long it will dial back the vast bond-buying programme that has been key to a global economic and equity rally for more than a year.
The Bank of England also meets next week amid annual UK inflation at the highest level in more than nine years.
"While it's also impossible to ignore the commentary coming from various central bank officials in recent weeks, I feel they may be persuaded to wait until the turn of the year if some of the downside risks unfold over the next couple of months and investors become anxious," said market analyst Craig Erlam at trading platform Oanda.
Eyes are also on the progress of US President Joe Biden's multi-trillion-dollar infrastructure and social spending plans, which are struggling through Congress.
At the same time, lawmakers have yet to agree on raising the debt ceiling -- bringing the possibility of a catastrophic US default into play.
