Il Nuovo Postiglione - Stocks mixed as muted US retail sales spur caution

The Dow Jones Industrial Average stood 0.4 percent ahead but the tech-heavy Nasdaq was just off two hours into Wall Street trading, after US retail sales showed no growth in December, falling short of analysts' expectations.

Investors were hoping for fresh insight into the world's biggest economy and the Federal Reserve's plans for interest rates ahead of Wednesday's release of non-farm payrolls, delayed from last Friday owing to a brief US government shutdown.

Closely watched inflation and retail sales figures are also lined up for release this week.

"It's a big week for economic data, with fresh reads on the consumer, jobs, and inflation. So far, though, the tone has been disappointing," said Brett Kenwell, US investment analyst at eToro.

"Volatility has returned to Wall Street, but it isn’t hitting everything equally," Kenwell added. "Cryptoassets, precious metals, software, and broader tech have been whipsawed, while other areas have held up well."

In Europe, Paris ended just in the green but Frankfurt and London lost around a quarter of one percent at the close.

Shares in Gucci owner Kering jumped 11 percent to top the Paris CAC 40, after its earnings beat estimates despite net profit plunging.

In London, oil giant BP's stock fell almost six percent after it suspended share buybacks and posted a sharp drop in annual net profit.

Shares in British drugmaker AstraZeneca advanced two percent after it posted a jump in net profit thanks to strong cancer drug sales.

In Asia, Tokyo climbed more than two percent to a fresh record, building on gains seen after Prime Minister Sanae Takaichi's stunning parliamentary election triumph.

Analysts say she has a clear mandate to pursue an expansionist fiscal policy to spur growth, though many warn that adding to Japan's massive public debt would alarm investors, threatening both government bond yields and the yen.

Advances across world markets have brought some calm to trading floors after last week's rollercoaster ride across a range of assets, with tech firms battered in particular by AI spending fears.

The readings come amid signs of weakness in the US labour market, with President Donald Trump's top economic adviser Kevin Hassett warning of more soft readings to come.

Oil prices slipped as traders tracked Monday's strong session on Wall Street, where tech firms Microsoft, Meta and Nvidia led the charge.

"The past week has undoubtedly highlighted the fact that there will be both winners and losers from AI," said Joshua Mahony, chief market analyst at Scope Markets.

Investors remain concerned about the vast sums of cash pumped into the artificial intelligence sector, with questions being asked about when profits will be realised, if at all.

- Key figures at around 1650 GMT -

New York - Dow: UP 0.4 percent at 50,245.20 points

New York - S&P 500: UP 0.1 percent at 6,968.44

New York - Nasdaq Composite: DOWN 0.1 percent at 23,218.21

London - FTSE 100: DOWN 0.3 percent at 10,353.84 (close)

Paris - CAC 40: UP 0.1 percent at 8,327.88 (close)

Frankfurt - DAX: DOWN 0.1 percent at 24,987.85 (close)

Tokyo - Nikkei 225: UP 2.3 percent at 57,650.54 (close)

Hong Kong - Hang Seng Index: UP 0.6 percent at 27,183.15 (close)

Shanghai - Composite: UP 0.1 percent at 4,128.37 (close)

Euro/dollar: DOWN at $1.1907 from $1.1918 on Monday

Pound/dollar: DOWN at $1.3670 from $1.3695

Dollar/yen: DOWN at 154.21 yen from 155.90 yen

Euro/pound: UP at 87.10 pence from 86.99 pence

Brent North Sea Crude: DOWN at $68.83 per barrel

West Texas Intermediate: DOWN 0.6 percent at $63.95 per barrel

O.R.Lucchese--INP