US, European equities mostly fall after mixed economic data

US stocks gave up early gains on Tuesday while most European markets also receded, as investors' hopes for a coronavirus recovery warred with lingering inflation fears and mixed economic data.

Although US central bankers have sought to play down expectations they could raise rates, "markets appear to be grappling with lingering Fed uncertainty amid the backdrop of rising inflation pressures, the recent calmness in the interest rate markets, and continued optimism of economic prosperity as vaccine rollouts continue," Charles Schwab analysts commented.

The Dow Jones Industrial Average and wider S&P 500 both fell slightly, while the tech-heavy Nasdaq was close to flat.

A key US consumer confidence survey showed the public is upbeat for now, but worried about the months ahead with "expectations of decelerating growth and softening labor market conditions," said Lynn Franco, senior director of economic indicators at The Conference Board.

On the upside was positive news from Moderna on the effectiveness of its coronavirus vaccine in teenagers.

The US firm announced earlier Tuesday that its shot against Covid-19 was "highly effective" in preventing the disease in teenagers, and that it would apply for authorization for the age group from US and global regulators "in early June."

In foreign exchange markets, the euro hit a five-month high against the dollar.

Bitcoin was lower again, continuing its recent rollercoaster ride where a supportive tweet from tycoon Elon Musk had helped offset fresh Chinese warnings of a crackdown on cryptocurrencies.

Meanwhile, oil prices gained slightly, against the backdrop of the talks between Iran, the United States and other world powers aimed at reviving their 2015 nuclear agreement.

In Europe, Germany's DAX index touched a new all-time high of 15,568.60 points in the morning before easing back in the afternoon to close just 0.2 per cent higher, while Paris and London each shed 0.3 per cent.

Investors in Europe's top economy had been encouraged by "a combination of M&A (merger and acquisition) activity, upbeat business sentiment data and easing US inflation fears," said analyst Sophie Griffiths at trading firm OANDA.

Investors seized on an announcement from Germany's top property group Vonovia of a 19-billion-euro merger with rival Deutsche Wohnen to form a sector giant.

Surging German business confidence also boosted by sentiment. The Ifo institute's monthly barometer based on a survey of 9,000 companies climbed to 99.2 points in May, 2.6 points up from April and its highest value in two years.

New York - Dow: DOWN 0.2 per cent at 34,312.46 (close)

New York - S&P 500: DOWN 0.2 per cent at 4,188.13 (close)

New York - Nasdaq: DOWN less than 0.1 per cent at 13,657.17 (close)

London - FTSE 100: DOWN 0.3 per cent at 7,029.79 (close)

Paris - CAC 40: DOWN 0.3 per cent at 6,390.27 (close)

Frankfurt - DAX 30: UP 0.2 per cent at 15,465.09 (close)

EURO STOXX 50: FLAT at 4,036.04 (close)

Tokyo - Nikkei 225: UP 0.7 per cent at 28,553.98 (close)

Hong Kong - Hang Seng Index: UP 1.8 per cent at 28,910.86 (close)

Shanghai - Composite: UP 2.4 per cent at 3,581.34 (close)

Euro/dollar: UP at $1.2253 from $1.2216 at 2100 GMT on Monday

Pound/dollar: DOWN at $1.4151 from $1.4157

Euro/pound: UP at 86.59 pence from 86.29 pence

Dollar/yen: FLAT at 108.76

Brent North Sea crude: UP 0.2 per cent at $68.85 per barrel

West Texas Intermediate: UP less than 0.1 per cent at $66.07 per barrel