Stock markets wavered Thursday despite another interest rate cut by the European Central Bank as investors remain on edge over the fallout from President Donald Trump’s tariffs blitz.In New York, the Dow and the tech-heavy Nasdaq extended losses while the broad-based S&P 500 edged up.Wall Street had slumped on Wednesday as Federal Reserve chief Jerome Powell warned that Trump’s sweeping tariffs were “highly likely to generate at least a temporary rise in inflation.”He said it could put the US central bank in the unenviable position of having to choose between tackling inflation and unemployment.Trump hit back Thursday, slamming Powell for not lowering interest rates as the ECB has done and saying his “termination cannot come fast enough.””All-in-all, the trade news and Powell’s comments provided a tough backdrop for markets,” said a Deutsche Bank analyst note.The Paris and Frankfurt stock exchanges closed in the red ahead of the Easter holiday as the ECB warned that rising trade tensions could weigh on eurozone growth.While Trump’s tariffs have increased the risk that growth could slow in the eurozone, ECB President Christine Lagarde said their impact on inflation was “less than clear.”The ECB decided to lower interest rates by a quarter point to 2.25 percent, the sixth consecutive time it has moved to ease borrowing costs.Trump imposed 10 percent tariffs on all imports this month, although he suspended higher duties on dozens of nations for 90 days. He has also placed 25 percent levies on imported steel, aluminium and cars.Shares in French luxury giant Hermes fell more than three percent after the Birkin handbag maker said it would raise prices at its US stores to offset the tariff impact.Elsewhere, the London stock exchange finished flat.- ‘Big Progress!’ -Investors found solace in Trump declaring “Big Progress!” in tariff negotiations with Japan, with Tokyo leading Asian stocks higher.Tokyo’s envoy Ryosei Akazawa said: “I understand that the US wants to make a deal within the 90 days. For our part, we want to do it as soon as possible.”With Japanese companies the biggest investors into the United States, Tokyo’s negotiations are of particular interest to markets.While Japan’s Prime Minister Shigeru Ishiba warned that the talks “won’t be easy”, he said the president had “expressed his desire to give the negotiations… the highest priority.”Elsewhere, safe-haven investment gold hit a fresh record above $3,357.78 an ounce before paring back gains, while the dollar and oil prices firmed.Hopes that Trump’s blistering tariffs could be pared back have helped temper some of the disquiet on markets after a rout at the start of the month fuelled by talk of a global recession and an upending of historic trading norms.”But don’t get carried away — the market remains jittery,” said Fawad Razaqzada, market analyst at City Index and Forex.com.- Key figures at 2030 GMT -New York – Dow: DOWN 1.3 percent at 39,142.23 points (close)New York – S&P 500: UP 0.1 percent at 5,282.70 (close)New York – Nasdaq: DOWN 0.1 percent at 16,286.45 (close)London – FTSE 100: FLAT at 8,275.66 (close)Paris – CAC 40: DOWN 0.6 percent at 7,285.86 (close)Frankfurt – DAX: DOWN 0.5 percent at 21,205.86 (close)Tokyo – Nikkei 225: UP 1.4 percent at 34,377.60 (close)Hong Kong – Hang Seng Index: UP 1.6 percent at 21,395.14 (close)Shanghai – Composite: UP 0.1 percent at 3,280.34 (close)Euro/dollar: DOWN at $1.1370 from $1.1395 on WednesdayPound/dollar: UP $1.3268 at $1.3235Dollar/yen: UP at 142.39 yen from 142.12 yen Euro/pound: DOWN at 85.67 pence from 86.06 penceBrent North Sea Crude: UP 3.2 percent at $67.96 per barrelWest Texas Intermediate: UP 3.5 percent at $64.68 per barreldan-bcp-lth-bys/tgb