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London - European stocks faltered on Thursday as investors paused following this week's sharp global rally, and on the eve of critical US payrolls data.
Asia equities however rose, buoyed by overnight gains on Wall Street and expectations of more Chinese economy-boosting measures after Beijing cut its reserve requirement for banks on Monday.
In Europe, Frankfurt, London and Paris stock markets dipped in and out of negative territory in jittery morning trade.
Global markets have enjoyed a bumper rally this week as investors ploughed back into equities, which are traditionally deemed a risky investment.
Sentiment has been boosted by fresh Chinese stimulus, steadier commodity prices, bright US economic data and hopes of more monetary policy action from the European Central Bank (ECB).
Thoughts are turning to Friday's US non-farm payrolls report and next week's ECB gathering, said Nick Stamenkovic, strategist at RIA Capital Markets in London.
Pause for breath
"Risk markets are taking a pause for breath after the recent rally as investors nervously await tomorrow's key US employment report and next week's crucial ECB meeting," Stamenkovic told AFP.
"Fading fears of a US recession, rising oil prices and dovish central bank comments have all contributed to the recent improvement in risk appetite."
The ECB meanwhile reconvenes next week for a hotly-anticipated gathering that concludes next on Thursday.
"As far as the eurozone is concerned, it's the idea we might see more ECB stimulus that is helping drive markets higher," added TrustNet analyst Tony Cross.
Asian markets mostly rose, with energy firms big winners thanks to a slight recovery in crude prices.
Shanghai advanced for a third straight day as traders also bet on China's leadership unveiling fresh stimulus when they start a key policy meeting this weekend.
After a nerve-shattering start to the year that saw trillions of dollar wiped off valuations, there are hopes markets have found some stability.
Confidence has been given a lift from positive US jobs data on Wednesday, China's decision to loosen monetary policy further on Monday, and ongoing talk of a deal between Saudi Arabia and other key producers on limiting oil output to shore up prices.
Momentum slowing
"Markets have moved up a lot. Therefore what we are seeing today - where momentum is slowing down and markets are coming off a bit - is nothing unusual, especially with tomorrow the very important US non-farm payrolls being released and the eagerly-awaited ECB meeting only one week away," added analyst Markus Huber at traders City Of London Markets.
"Even with overall sentiment looking a lot brighter than just a few weeks ago - mainly because of better than expected US economic data - at this stage more good data will be needed for markets to be able to move higher," Huber told AFP.
Payrolls firm ADP said Wednesday that the US private sector added 214 000 jobs in February, better than the 190 000 expected.
The news provided some reassurance following weeks of worry that the world's top economy may not be as strong as originally thought.
In Asia on Thursday, Tokyo ended up 1.3%, Shanghai gained 0.4% and Sydney 1.2%, while there were also strong gains in Singapore, Wellington, Seoul and Kuala Lumpur.
However, after a two-day surge of about 4.5%, Hong Kong retreated 0.3%.
Traders are also keeping watch on events in Beijing where the government on Saturday heads into the National People's Congress, where delegates will sign off on a new five-year economic plan.
The gathering comes days after the central bank cut the amount of cash banks must keep in reserve, its latest move to try to ramp up lending in order to kick start slowing growth.
