Stock markets diverge as Trump fears build

Global stock markets diverged on Wednesday as traders fret over the impact of Donald Trump's presidency on the Chinese and global economies, with fears that his policies could also reignite US inflation.

The prospect of higher prices on the back of Trump's planned tax cuts, import tariffs and an easing of regulations gave fresh impetus to the dollar, which has rallied since the Republican's election win last week.

Focus is now on the release of key US October consumer price data due later in the day, with expectations for a slight uptick from the previous month.

"It's particularly pertinent given concerns that Trump's tariff policies will be inflationary," said Susannah Streeter, head of money and markets at Hargreaves Lansdown.

"If prices are already looking unruly, expectations will rise for Trump's threats to be watered down."

The reading will be pored over for an idea about the Federal Reserve's plans for borrowing costs when it meets again in December.

Major European indices edged higher around midday Wednesday.

Shares in Siemens Energy surged more than 15 per cent after the German company posted positive annual results and upgraded its outlook.

Asian markets mostly ended lower as Trump named known China hawks to key cabinet positions, fuelling concerns about another debilitating trade war between the economic superpowers.

"We expect the effective tariff rate on US imports from China to rise to around 40 per cent," said Harry Murphy Cruise at Moody's Analytics.

"That would effectively double the rate today," he told AFP.

"It's likely the threat of further tariffs up to the touted 60 per cent would be used as a negotiating tool."