LONDON (AFP) -
Share prices fell sharply in Frankfurt and Paris on Thursday ahead of European Central Bank president Jean-Claude Trichet's press conference due after the central bank's latest call on interest rates.
Stocks however rose slightly in London ahead of the Bank of England's latest monthly rate call, thanks to gains to oil and mining majors which are heavily weighted on the FTSE 100, traders said.
The ECB and BoE are widely expected to keep their key lending rates unchanged at 4.25 percent and 5.00 percent respectively on Thursday as high inflation remains their key concern despite threats of recession.
In late morning trade, Frankfurt's DAX 30 was down 1.24 percent at 6,387.38 points and the Paris CAC 40 fell 0.92 percent to 4,406.40.
London's FTSE 100 index of top shares showed a gain of 0.39 percent at 5,521.30 points.
The DJ Euro Stoxx 50 index of leading eurozone shares slid 0.54 percent to stand at 3,350.72.
In foreign exchange trade, the euro struck a record high against sterling and pulled away from eight-month lows versus the dollar.
Sterling also hit a fresh 2.5-year trough against the dollar, which was winning support ahead of US jobs data due Thursday and Friday.
Japanese share prices closed down 1.04 percent amid caution ahead of the release of US jobs figures, dealers said.
US stocks ended mixed on Wednesday as falling oil prices reminded investors of the slowing global economy, with a contraction in the eurozone underlining growth concerns.
Andrea Kramer and Joseph Hargett, analysts at Schaeffer's Investment Research, highlighted the market's ambiguity over the decline in crude oil prices.
"Falling crude prices continue to dominate investor sentiment on Wall Street, with many traders unsure whether to cheer for the decline, or worry that falling demand is a sign that economic pressures may be more widespread than feared," they wrote in a client note.
Oil prices rose slightly towards 110 dollars on Thursday as markets awaited the latest weekly snapshot of US energy inventories.
Oil has plunged from record highs of more than 147 dollars in early July because of falling demand for oil caused by a slowing global economy.