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| - Global stock markets paused for breath Friday as traders eyed the outlook for both US interest rates and the global coronavirus crisis, while the yen briefly spiked after Japan's prime minister said he was stepping down for health reasons. Federal Reserve boss Jerome Powell indicated Thursday that US interest rates will stay ultra low for as long as needed, as the central bank looks to nurture the recovery from the devastating Covid-19 pandemic. Nearing the half-way stage in European trading, London, Frankfurt and Paris saw the needle barely move while on Wall Street, the Dow inched ahead just 0.2 percent minutes after the opening bell. "European stock markets are heading for a mixed end to the week, with US futures taking a similar approach after venturing back into record territory on Thursday," said Craig Erlam, senior market analyst with OANDA Europe. Although "the promise of lower rates for longer was music to the ears of Wall Street bulls" Erlam said that "for now, little has changed. The taps will be on for the foreseeable future as the economy recovers from the wreckage of the pandemic, hopefully aided by a vaccine later this year." News of further coronavirus infection spikes around the world, particularly in Europe, continues to rattle investors after Germany and Spain imposed fresh control measures as cases surge following the easing of lockdowns. "It looks like the Fed news wasn't... appetising for European investors, who (are) showing signs of distress regarding rising Covid-19 cases... and the possibility of seeing stricter government measures again," Swissquote Bank senior analyst Ipek Ozkardeskaya told AFP. Powell said the Fed would be in no rush to reel in inflation even if it overshoots the central bank's two percent target, instead opting for an average that takes into account periods of weak price rises. The Fed chief added that policymakers would stick with the new framework "for some time", indicating that the era of cheap borrowing is here for the foreseeable future. "One could argue that the Fed following this path was already expected by the market, hence why stocks have not surged ahead," said AJ Bell investment director Russ Mould. Yet the news weighed on the dollar, sending the pound to its highest level since December 2019. The yen -- regarded as a safe haven in times of turmoil -- also spiked by more than one percent versus the dollar as Japanese Prime Minister Shinzo Abe announced he would resign. Tokyo's Nikkei 225 ended down 1.4 percent ahead of the official confirmation, which ends a record-breaking tenure at the helm of the world's third-largest economy. Abe said he is suffering a recurrence of the ulcerative colitis that forced him to cut short a first term in office, and that he no longer felt able to continue. Analysts said there would be concerns about the end of his big-spending, easy money policy -- dubbed Abenomics -- that has been credited with supporting the fragile economy for years. "His premiership is known for his aggressive stimulus programme -- which was a big factor behind the major rally in Japanese stocks," noted CMC Markets analyst David Madden. "Dealers are a little worried about the change in leadership in Japan, as the next leader might not be as open to excessive easing policies." New York - Dow: UP 0.2 percent at 28,552.72 points London - FTSE 100: FLAT at 6,002.41 points Frankfurt - DAX 30: DOWN 0.2 percent at 13,076.56 Paris - CAC 40: FLAT at 5,016.90 EURO STOXX 50: DOWN 0.1 percent at 3,328.53 Tokyo - Nikkei 225: DOWN 1.4 percent at 22,882.65 (close) Hong Kong - Hang Seng: UP 0.6 percent at 25,422.06 (close) Shanghai - Composite: UP 1.6 percent at 3,403.81 (close) Euro/dollar: UP at $1.1889 from $1.1822 at 2100 GMT on Thursday Dollar/yen: DOWN at 105.55 yen from 106.57 yen Pound/dollar: UP at $1.3281 from $1.3201 Euro/pound: DOWN at 89.51 pence from 89.56 pence Brent North Sea crude: DOWN 0.1 percent at $45.04 per barrel West Texas Intermediate: UP 0.2 percent at $43.15 burs-rfj/cdw/tgb
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