(MENAFN- AFP) European stock markets diverged in jittery trade on Tuesday as investors mulled mixed earnings and weak oil prices on the eve of a US interest rate decision.
London rose 0.3 percent as dealers also awaited Wednesday's British economic growth data and next week's Bank of England interest rate call.
Frankfurt stocks added 0.2 percent after solid gains the previous day on bright German business confidence.
On the downside, Paris fell 0.4 percent with sentiment partly hit by news of a church hostage taking in France, dealers said.
A priest was killed Tuesday when men armed with knives seized hostages at a church near the northern French city of Rouen, a police source said.
Police said they killed two hostage-takers in the attack in the Normandy town of Saint-Etienne-du-Rouvray, 125 kilometres (77 miles) north of Paris.
"European shares were choppy on Tuesday as mixed corporate results were overrun by jitters ahead of central bank meetings, a slide in oil prices and ongoing geopolitical tensions after hostages were taken at a church in Normandy," said CMC Markets analyst Jasper Lawler.
In foreign exchange, the European single currency clambered above the dollar as participants awaited the Fed.
The US central bank, which concludes its latest meeting on Wednesday, is not expected to make any big announcement.
However, its accompanying statement will be pored over for clues about policy following a run of strong data that have fanned talk of a rate hike.
Traders also eyed Wednesday's first estimate of British second-quarter gross domestic product (GDP), before the BoE decision due on August 4.
The BoE -- which this month decided to keep its rates fixed at 0.50 percent -- where they have stood since March 2009 -- has already signalled a possible cut in response to Brexit.
- 'Jittery kind of dullness' -
"The markets have settled into a jittery kind of dullness," noted Spreadex analyst Connor Campbell, in reference to Tuesday's trade.
"I think it's just pre-Fed jitters, pre-UK GDP jitters, pre-BoE next week jitters," he told AFP.
The pound dipped after BoE policymaker Martin Weale told the Financial Times newspaper that recent poor data has persuaded him to vote in favour of stimulus.
Meanwhile, Europe's energy sector faced fresh selling pressure Tuesday as oil prices struck new three-month lows on supply glut concerns.
BP's share price sank 2.2 percent to 430.60 pence, hit also by disappointing second-quarter results.
In Asia on Tuesday, most markets rose but Tokyo sank on a strong yen as traders also awaited this Friday's Bank of Japan gathering.
The BoJ is thought to be preparing to widen its broad monetary easing programme, a prospect which sent the yen tumbling and the Nikkei index soaring this month.
However, the two reversed course Tuesday with a drop in oil prices also hitting confidence.
- Key figures at 1045 GMT -
London - FTSE 100: UP 0.3 percent at 6,729.60 points
Frankfurt - DAX 30: UP 0.2 percent at 10,214
Paris - CAC 40: DOWN 0.2 percent at 4,380
EURO STOXX 50: DOWN 0.2 percent at 2,967.30
Tokyo - Nikkei 225: DOWN 1.4 percent at 16,383.04 (close)
Hong Kong - Hang Seng: UP 0.6 percent at 22,129.73 (close)
Shanghai - Composite: UP 1.1 percent at 3,050.17 (close)
New York - DOW: DOWN 0.4 percent at 18,493.06 (close)
Euro/dollar: UP at $1.1015 from $1.0993
Pound/dollar: DOWN at $1.3126 from $1.3139
Dollar/yen: DOWN at 104.35 yen from 105.82 yen
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