London Stocks Stall as Britons Head to Polls

The London stock market stalled on Thursday, bucking an upwards trend across Europe, with investors nervous as Britons vote in a snap general election.

Sentiment was also clouded before an interest rate decision in the eurozone -- and crucial testimony from sacked FBI chief James Comey in the United States. 

"Super Thursday is finally here and traders are ready for a volatile day ... with important events in Europe and the United States," said analyst Konstantinos Anthis at ADS Securities.

The British capital's FTSE 100 index turned flat heading into midday, wiping out initial gains, while the pound edged lower against the dollar with voting underway.

In the eurozone, Frankfurt and Paris rebounded somewhat before a hotly-anticipated European Central Bank policy announcement. All eyes will be on ECB chief Mario Draghi to see whether he signals an exit from its easy-money policy.

Most observers predict however that the bank's 60-billion-euro ($67.4 billion) monthly bond purchases will continue and interest rates will remain at historic lows.

- Draghi focus -

"Attention today should be focused on Draghi's press conference and the UK general election," NFS Macro analyst Nick Stamenkovic told AFP.

Britain's Conservative Prime Minister Theresa May is still set to beat main opposition Labor leader Jeremy Corbyn, despite a recent narrowing in the opinion polls. Results are not due until early Friday.

Some traders remain anxious over the possibility of a hung parliament, in which the Conservatives would fall short of the 326 seats needed for a majority.

"The pound's recent steady performance suggests a clear win for Theresa May is discounted," Stamenkovic added.

"Indeed, the pound is vulnerable to a hung parliament or the outside risk of a Labor victory."

The election is May's first since taking office in July last year, after Britons voted by 52 percent to leave the European Union. 

The premier called the election three years early in a bid to strengthen her slender majority going into Brexit talks, which begin on June 19.

In Asia on Thursday, Shanghai and Hong Kong led most markets higher after Chinese trade data beat forecasts.

 - Comey revelations? -

Investors remain on tenterhooks ahead of Comey's evidence to a congressional committee, which could be damaging to US President Donald Trump and his economy-boosting agenda.

Comey said Wednesday that Trump had urged him to drop a probe into former national security adviser Michael Flynn, prompting fresh allegations that the U.S. president tried to obstruct justice.

On the eve of his appearance on Capitol Hill, Comey said Trump had raised the sensitive FBI probe into Russia's alleged meddling in the US election in multiple discussions, leaving him deeply uneasy over whether the president was attempting to interfere.

"I hope you can see your way clear to letting this go, to letting Flynn go. He is a good guy," Comey quoted Trump as telling him on February 14 as they sat alone together in the Oval Office, according to his testimony.

Oanda analyst Craig Erlam added: "Based on the text of Comey’s prepared testimony, it would seem that markets are not expecting anything too shocking, despite there being a reference to Trump urging him to drop the investigation into Flynn."

- Key figures around 1130 GMT -

London - FTSE 100: FLAT at 7,477.17 points

Paris - CAC 40: UP 0.5 percent at 5,289.01

Frankfurt - DAX 30: UP 0.5 percent at 12,736.39

EURO STOXX 50: UP 0.7 percent at 3,572.82

Tokyo - Nikkei 225: DOWN 0.4 percent at 19,909.26 (close) 

Hong Kong - Hang Seng: UP 0.3 percent at 26,063.06 (close)

Shanghai - Composite: UP 0.3 percent at 3,150.33 (close)

New York - Dow: DOWN 0.2 percent at 21,173.69 (close)

Pound/dollar: DOWN at $1.2945 from $1.2962 at 2100 GMT on Wednesday

Euro/dollar: DOWN at $1.1235 from $1.1263 

Dollar/yen: UP at 110.06 yen from 109.80 yen

Oil - Brent North Sea: UP 44 cents at $48.50 per barrel

Oil - West Texas Intermediate: UP 39 cents at $46.11