European stock markets diverged on Tuesday, as London shot past its 13-year peak amid stimulus policies from top world central banks and a barrage of company results, dealers said.
"Global equity markets have held their levels this morning, as the growing appetite for risk assets continues despite the generally weak macro environment," said analyst Matt Basi at traders CMC Markets.
Frankfurt's DAX 30 (Xetra: ^GDAXI - news) fell 0.06 percent to 8,450.70 points and in Paris the CAC 40 (Paris: ^FCHI - news) index climbed 0.02 percent to 4,023.85. It had risen above 4,000 points last Friday for the first time since July 2011.
"With the FTSE 100 happily sitting at its highest level since 2000, there will be some who are wondering whether this rally has got ahead of economic fundamentals," said sales trader Yusuf Heusen at traders IG (LSE: IGG.L - news) .
"Perhaps global growth does not merit markets at these highs, but liquidity-boosting actions from central banks take precedence."
Stimulus drives by central banks -- including major quantitative easing (QE) policies by the Bank of England, the US Federal Reserve and the Bank of Japan -- have boosted sentiment and driven investors into equities.
On Wall Street, stocks slipped at opening as investors waited for Fed chairman Ben Bernanke's testimony on the US economic outlook to Congress on Wednesday.
The Dow Jones Industrial Average shed 0.12 percent, the tech-rich Nasdaq Composite Index fell 0.07 percent and the broad-market S&P 500 lost 0.07 percent.
In foreign exchange activity, the dollar rose to 102.83 yen from 102.26 yen on Monday. It had jumped as high as 103.31 yen on Friday, touching a level last seen in October 2008.
The European single currency dropped to $1.2868 from $1.2884 late in New York on Monday.
Sterling fell against other currencies as a drop in British annual inflation stoked the prospect of more QE from the Bank of England, dealers said.
On the London Bullion Market, the price of gold advanced to $1,387.75 an ounce from $1,354.75 late on Monday.
British investors meanwhile digested a raft of company results.
The price of shares in mobile phone giant Vodafone (LSE: VOD.L - news) edged up 0.38 percent to 198.35 pence despite news that annual net profit plunged 90 percent to £673 million ($1.03 billion, 796 million euros) on the back of vast writedowns in Italy and Spain.
And Burberry stock jumped 3.21 percent to 1,510 pence after the luxury clothing and accessories maker announced that adjusted pre-tax profits before exceptional items climbed 14 percent to £428 million, boosted by strong sales in China.