The China Mail - European stocks steady, oil extends losses

Asia's main equity markets closed lower after a steep drop on Wall Street Thursday fuelled by renewed fears that Russia would soon invade Ukraine, adding to long-running angst about the Federal Reserve's plans to hike interest rates.

While tensions in Eastern Europe continue to absorb most of the attention, oil prices extended losses as traders grow increasingly optimistic of a deal on Iran's nuclear programme that could see it restart crude exports.

"Reports of the US and Iran nearing a new nuclear deal couldn't have come at a better time and oil prices are slipping at the prospect of more than a million barrels of crude re-entering the market," noted Craig Erlam, senior market analyst at OANDA trading group.

"In the absence of a deal, we could already be talking about triple-figure oil prices."

Oil prices on Friday lost nearly two percent to stand around $90 per barrel.

As for equities, "markets continue to chop around on these Russia headlines", said Neil Wilson, analyst at Markets.com.

US President Joe Biden will hold talks with Western allies on Friday to discuss Ukraine as fears swirl Russia could be seeking to create a pretext to invade, European sources confirmed.

Sources said the talks would include the leaders of Britain, Canada, France, Germany, Italy, Poland, Romania, the European Union and NATO.

US Defense Secretary Lloyd Austin said Washington was seeing "more" Russian forces moving into the Ukraine border region, despite Moscow's announcement of withdrawals.

The crisis over Ukraine comes as traders continue to contend with the prospect of US interest rates rising sharply this year as the Fed tries to rein in inflation at a 40-year high.

After spending most of last year saying surging prices would be transitory, the US central bank is now in full-on firefighting mode but commentators fear it may be behind the curve and will have to act more stringently than previously thought.

- Key figures around 1200 GMT -

London - FTSE 100: UP 0.3 percent at 7,592.64 points

Frankfurt - DAX: DOWN 0.2 percent at 15,241.55

Paris - CAC 40: UP 0.3 percent at 6,966.30

EURO STOXX 50: FLAT at 4,113.50

Tokyo - Nikkei 225: DOWN 0.4 percent at 27,122.07 (close)

Hong Kong - Hang Seng Index: DOWN 1.9 percent at 24,327.71 (close)

Shanghai - Composite: DOWN 0.7 percent at 3,490.76 (close)

New York - Dow: DOWN 1.8 percent at 34,312.03 (close)

West Texas Intermediate: DOWN 1.8 percent at $90.07 per barrel

Brent North Sea crude: DOWN 1.7 percent at $91.37 per barrel

Euro/dollar: DOWN at $1.1361 from $1.1366 late Thursday

Pound/dollar: UP at $1.3616 from $1.3615

Euro/pound: DOWN at 83.43 pence from 83.44 pence

Dollar/yen: UP at 115.14 yen from 114.91 yen

F.Jackson--ThChM