European stock markets slid on Thursday following sharp declines in Asia and on Wall Street after Federal Reserve minutes fanned expectations that US interest rates would rise further.

Around 1100 GMT, London's benchmark FTSE 100 index was down 0.9 percent, as investors also grappled with a raft of company results and a slight downgrading of 2017 UK growth.

The Paris CAC fell 0.4 percent, while Frankfurt's DAX shed 0.8 percent, compared with closing levels on Wednesday.

The much-anticipated notes from the Fed's January policy meeting showed the board thought Donald Trump's sweeping tax cuts would fire up the already humming economy, pushing inflation higher.

Analysts speculated that the Fed would lift interest rates at its next meeting in March, but there is debate about whether it will carry out three increases — as many have predicted — or four, in light of the recent spate of strong data.

“Our take is that the minutes reflect events prior to the jump in hourly earnings seen in the January jobs report and also prior to the extra spending bill passed by Congress early in February,” said Rodrigo Catril, forex strategist at National Australia Bank.

“This would suggest that there is a good chance that the current FOMC thinking has evolved towards a more hawkish tone since.”

Cheap credit –

In London, stocks of energy provider Centrica were the big risers, helping to bolster the market after delivering results that were not as bad as feared.

Despite reporting a hefty loss, banking giant Barclays also rose as investors bet on it increasing its dividend this year and conducting more share buybacks.

The news from the Fed on Wednesday pushed the key 10-year US Treasury yield to a four-year high and boosted the dollar but sent US equities into reverse with all three main indices ending in negative territory.

Investors have been on edge since the start of this month when global markets were sent spinning by a strong US jobs and wages report that fuelled talk of tighter borrowing costs.

Equities around the world have surged to all-time highs thanks to a years-long rally built on cheap credit from crisis-era stimulus. But with economies globally improving, central banks are beginning to wind those policies in.

In Asia, Tokyo ended 1.1 percent lower and Hong Kong fell 1.5 percent but Shanghai jumped more than two percent as mainland traders returned from a week-long break for the Lunar New Year celebrations.

With rates expected to rise, the dollar had gained against the pound and euro on Wednesday, although fell against the euro in early trading Thursday.

The greenback was well up against most other high-yielding currencies, with the Australian dollar, Korean won and Indonesian rupiah sharply lower.

However, the yen rebounded and pushed higher as traders flocked to the Japanese unit, which is considered a safe-haven asset in times of volatility and uncertainty.

Key figures around 1100 GMT –

London – FTSE 100: DOWN 0.9 percent at 7,217.46

Frankfurt – DAX 30: DOWN 0.8 percent at 12,372.80

Paris – CAC 40: DOWN 0.4 percent at 5,282.98

EURO STOXX 50: DOWN 0.5 percent at 3,414.61

Tokyo – Nikkei 225: DOWN 1.1 percent at 21,736.44 (close)

Hong Kong – Hang Seng: DOWN 1.5 percent at 30,965.68 (close)

Shanghai – Composite: UP 2.2 percent at 3,268.56 (close)

New York – DOW: DOWN: 0.7 percent at 24,797.78 (close)

Euro/dollar: UP at $1.2297 from $1.2284 at 2200 GMT

Pound/dollar: DOWN at $1.3894 from $1.3918

Dollar/yen: DOWN at 107.33 yen from 107.78 yen

Oil – West Texas Intermediate: DOWN 36 cents at $61.32 per barrel

Oil – Brent North Sea: DOWN 25 cents at $65.17 per barrel – APP/AFP