Summary Asian and European markets mostly fell with Tokyo down a sharp 1.50 percent. Hong Kong was flat.
LONDON (AFP) - European stock markets fell and the euro strengthened on Thursday, as jitters over the fate of monetary stimulus from the US Federal Reserve overshadowed an improved growth forecast for the eurozone by the ECB.
Traders largely shrugged off decisions by the European Central Bank and the Bank of England to hold key rates, fixing their focus instead on the fate of US stimulus that has boosted markets to record highs.
At close, London s benchmark FTSE 100 index was down 0.18 percent at 6,498.33 points.
Frankfurt s DAX 30 fell 0.61 percent to 9,084.95 points and the CAC 40 in Paris shed 1.17 percent to 4,099.91 points.
In foreign exchange activity, the euro climbed to $1.3674 -- the highest level since late October. It later stood at $1.3670, up from $1.3591 on Wednesday.
Gold prices meanwhile fell to $1,222.50 an ounce on the London Bullion Market, from $1,227.50.
"Three weeks before Christmas, the ECB took a pause in action. As expected, they kept interest rates at record lows this month after cutting the main rate to 0.25 percent in November," Christian Schulz of Berenberg Bank said.
"With inflation a little bit higher, unemployment tentatively stabilising and leading indicators pointing to a slightly firming recovery, the ECB did not see a need for immediate further action, making the statement sound slightly less dovish than in November," he said.
US data also weighed, with the Commerce Department announcing speedy 3.6 percent growth in the third quarter, much higher than the original estimate of 2.8 percent.
Meanwhile first-time claims for US unemployment benefits fell sharply in the last week of November to 298,000, far below the average of recent months.
This sent US stocks lower as the market continues to grapple with the significance of better data, which could prompt the Federal Reserve to scale back its bond-buying stimulus.
"At the moment, market participants are trying to factor what the Fed s next move will be and when," said Briefing.com analyst Patrick O Hare. "There is confusion in that respect, which is why trading conditions could remain choppy."
In afternoon trade, the Dow Jones Industrial Average dipped 0.34 percent to 15,836.21 points.
The broad-based S&P 500 dropped 0.19 percent to 1,786.16 points, while the tech-rich Nasdaq Composite Index edged down 0.23 percent to 4,028.87 points.
In Britain, the Bank of England also voted on Thursday to freeze interest rates at a record-low and maintain its stimulus level.
The British government meanwhile hiked its economic growth forecasts as the recovery gathers speed but vowed to pursue its deficit-slashing strategy, warning that Britons might have to work until 69 before claiming a state pension.
Asian markets mostly fell on Thursday with Tokyo down a sharp 1.50 percent. Hong Kong was flat.
