World stocks were a touch softer on Wednesday with sentiment caught between upbeat earnings and further signs that strong inflation will keep central banks firmly in rate-hiking mode.
Europe's broad STOXX 600 index (.STOXX) was slightly down. In London, banks such as LLoyds (LLOY.L) and NatWest (NWG.L) tumbled on a report that Britain's new finance minister was planning to raid bank profits.
Data meanwhile showed British inflation back to a 40-year high at 10.1% in September, piling pressure on the Bank of England to hike rates again.
The S&P 500 stock index is up more than 6% from roughly two-year lows hit last week.
"What is reassuring is that in an environment which has been very difficult for equity markets over the past few weeks, is that you have (earnings)
numbers that are turning out positive," said Francois Savary, chief investment officer at Prime Partners. "Is it going to last? We need to focus on the guidance and also we are still living with this interest rate environment that is very volatile and that means it's difficult to see the market pushing higher."
In Asia, Japan's Nikkei (.N225) rose around 0.4% but MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) reversed early gains and fell more than 1%, driven by a drop in Chinese shares
