London (AFP) - Stock markets struggled for direction Tuesday as investors weighed Chinese stimulus hopes, political tensions in France and the US interest-rate outlook.

Meanwhile oil prices jumped more than two percent as the United States expanded sanctions on Iran’s so-called “shadow fleet” illicitly selling oil to foreign markets.

Germany’s blue-chip DAX stock index jumped above 20,000 points for the first time and Paris rebounded even as France braced for new political turmoil, while US shares were mostly mixed in late morning trading.

The euro also bounced back against the dollar, which was pressured by expectations that the Federal Reserve will once more cut US interest rates this month.

Opposition lawmakers in France prepared to back a no-confidence motion this week that risks toppling the government of Prime Minister Michel Barnier after just three months in office.

The standoff between Barnier and the opposition over France’s 2025 budget has caused jitters on financial markets.

Wall Street traded mixed, a day after setting more record highs amid strong US holiday sales and as traders assessed Washington’s decision to impose fresh tech export restrictions on Beijing.

Briefing.com analyst Patrick O’Hare said there was a lack of a strong conviction to take positions as the S&P 500 and tech-heavy Nasdaq hung around record highs.

Investors are “mindful that the big rally since the (US) election presents a valid reason to think there could be – or should be – a consolidation period,” said O’Hare.

But “by and large, there is an allowance to think the market can continue to move higher with momentum, a seasonal bias, and a fear of missing out on further gains,” he added.

The trading day got off on a string foot Tuesday after a Bloomberg report said China’s top leaders, including President Xi Jinping, would hold a two-day economic work conference next week to outline their targets and stimulus plans for next year.

The report followed manufacturing activity data on Monday that suggested China’s economic struggles may be coming to an end, but investors are looking for Beijing to step up support for the economy.

The news helped push Hong Kong and Shanghai stock markets higher despite Washington announcing new export restrictions taking aim at Beijing’s ability to make advanced semiconductors.

The moves step up existing US efforts to tighten curbs on exports of state-of-the-art AI chips to China.

Beijing hit back by saying it would restrict exports to the United States of some key components in making semiconductors.

Investors remain wary about the prospect of a second term for Donald Trump as US president, particularly after his pledge to hit China, Canada and Mexico with heavy tariffs.

Oil prices were already trading higher ahead of a meeting Thursday of members of the OPEC oil cartel and its allies, and jumped a further two percent after the United States announced expanded sanctions on Iranian shippers illicitly selling oil to foreign markets.

“The forecast is that they will announce an extension until the end of the first quarter of 2025, and this should help put a floor under prices,” said Trade Nation analyst David Morrison.

China stimulus measures would also help boost oil demand growth in China, which has been flagging and causing worries about overall oil demand.

- Key figures around 1630 GMT -

New York - Dow: DOWN 0.3 percent at 44,641.48 points

New York - S&P 500: DOWN less than 0.1 percent at 6,044.79

New York - Nasdaq Composite: UP 0.2 percent at 19,450.71

London - FTSE 100: UP 0.6 percent at 8,359.41 (close)

Paris - CAC 40: UP 0.3 percent at 7,255.42 (close)

Frankfurt - DAX: UP 0.4 percent at 20,016.75 (close)

Tokyo - Nikkei 225: UP 1.9 percent at 39,248.86 (close)

Hong Kong - Hang Seng Index: UP 1.0 percent at 19,746.32 (close)

Shanghai - Composite: UP 0.4 percent at 3,378.81 (close)

Euro/dollar: UP at $1.0507 from $1.0499 on Monday

Pound/dollar: UP at $1.2660 from $1.2654

Dollar/yen: DOWN at 149.51 yen from 149.54 yen

Euro/pound: UP at 83.00 from 82.97 pence

Brent North Sea Crude: UP 2.2 percent at $73.43 per barrel

West Texas Intermediate: UP 2.4 percent at $69.76 per barrel

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