Europe's main stock markets rose Wednesday with Frankfurt scaling historic heights on hopes of interest rate cuts, while London gained ground as slender UK economic growth sparked talk of an end to recession.

Elsewhere, bitcoin forged its latest record peak.

Frankfurt briefly struck an all-time pinnacle above 18,000 points as speculation mounted that the European Central Bank and US Federal Reserve could lower borrowing costs in June.

London firmed as official data showed the UK economy expanded 0.2 percent in January after a moderate contraction in December, igniting speculation that it has emerged from a shallow downturn.

Bitcoin surged to a new high of $73,664 to extend its blistering run, propelled partly by global moves to increase trading access to the world's biggest cryptocurrency.

"Stocks markets have been buoyed by the prospect of central bank rate cuts," Rabobank analyst Jane Foley told AFP.

She said improved European growth was "adding to the optimism".

Asia's main stock markets dropped Wednesday despite further gains Tuesday on Wall Street.

"The market has brushed off hotter-than-expected US inflation data and still sees a June rate cut" from the Federal Reserve, said City Index analyst Fiona Cincotta.

While February's US consumer price index reading was not ideal -- having already come in above expectations in January -- analysts said Tuesday's data showed price rises were levelling out and that the start of the year often saw a blip higher.

Hong Kong dipped after a three-day rally, while Tokyo was weighed down by talk that the Bank of Japan could next week begin shifting away from its ultra-loose monetary policy.

Expectations for Bank of Japan tightening picked up on news that Toyota had agreed to union demands for a full hike in salary and bonuses for the fourth year in a row.

- Key figures around 1145 GMT -

London - FTSE 100: UP 0.1 percent at 7,751.75 points

Paris - CAC 40: UP 0.6 percent at 8,133.51

Frankfurt - DAX: UP 0.1 percent at 17,982.97

EURO STOXX 50: UP 0.6 percent at 5,012.61

Tokyo - Nikkei 225: DOWN 0.3 percent at 38,695.97 (close)

Hong Kong - Hang Seng Index: DOWN 0.1 percent at 17,082.11 (close)

Shanghai - Composite: DOWN 0.4 percent at 3,043.83 (close)

New York - Dow: UP 0.6 percent at 39,005.49 (close)

Euro/dollar: UP at $1.0940 from $1.0930 on Tuesday

Dollar/yen: UP at 147.95 yen from 147.67 yen

Pound/dollar: UP at $1.2799 from $1.2795

Euro/pound: UP at 85.47 pence from 85.41 pence

Brent North Sea Crude: UP 1.3 percent at $82.97 per barrel

West Texas Intermediate: UP 1.4 percent at $78.33 per barrel

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