Europe's stock markets diverged Thursday after a mixed Asian session, with investors taking a breather on easing inflation fears, but Airbus stock soared on an upbeat production outlook. London stocks dipped in subdued late morning deals in the absence of major earnings or data. Paris rose 0.4 percent in early afternoon eurozone trade on the Airbus news, while Frankfurt equities fell 0.4 percent after a recent record run. The dollar steadied, having struck a January low earlier in the week, before a batch of vital US economic data. "It looks very much like just divergence with everything so quiet," IG analyst Chris Beauchamp told AFP. "Inflation worries have receded (and) the Federal Reserve seems to have calmed fears about leaving policy unchanged." "So, while they won't do anything concrete, markets seem reassured that they will at least monitor the situation." Back in Paris, Airbus revealed it will produce more single-aisle aircraft in 2023 than before the coronavirus crisis. The news stoked hopes of recovery in the aviation sector, after the pandemic had decimated demand for international air travel. In reaction, the European aerospace giant's share price flew more than six percent higher to stand at 103.70 euros. "France's CAC-40 index looks to be getting a lift from Airbus' aggressive plans for jetliner production amid hopes for a wider recovery in air travel in the wake of the pandemic," AJ Bell investment director Russ Mould told AFP. "That is also giving a lift to aerospace suppliers Safran and Thales." However, optimism about the broader global economic recovery remains shackled by fears that an inflationary spike could force central banks to rein in monetary policy earlier than flagged. The global vaccines rollout, the reopening of economies, trillions of dollars in stimulus and central bank largesse have combined to fuel a rally in world equities since their pandemic-induced collapse at the start of last year. And while that enormous splurge appears to have paid off, with lives slowly returning to a semblance of normal and businesses back up and running, traders have in recent months grown increasingly worried about the impact on prices. The Federal Reserve said any inflation spike will be temporary and ultra-easy monetary policy will be kept in place until the recovery is well on track. After another tepid lead from Wall Street, Asia meanwhile struggled to maintain this week's advances. Traders are now awaiting the release later in the day of key data on US jobless claims, which will provide a fresh snapshot of the recovery in the world's top economy, while updated gross domestic product growth data will also be released. Separately, China said top trade officials had held "candid, pragmatic" talks with their US counterparts for the first time since Joe Biden became president, as Washington scrutinises whether Beijing is holding up its end of a $200 billion trade pact signed last year. London - FTSE 100: DOWN 0.2 percent at 7,016.68 points Paris - CAC 40: UP 0.4 percent at 6,418.59 Frankfurt - DAX 30: DOWN 0.4 percent at 15,396.80 EURO STOXX 50: FLAT at 4,029.81 Tokyo - Nikkei 225: DOWN 0.3 percent at 28,549.01 (close) Hong Kong - Hang Seng Index: DOWN 0.2 percent at 29,113.20 (close) Shanghai - Composite: UP 0.4 percent at 3,608.85 (close) New York - Dow: FLAT at 34,323.05 (close) Euro/dollar: DOWN at $1.2207 from $1.2192 at 2100 GMT Pound/dollar: UP at $1.4135 from $1.4119 Euro/pound: UNCHANGED at 86.35 pence Dollar/yen: UP at 109.17 from 109.15 yen Brent North Sea crude: DOWN 0.7 percent at $68.37 per barrel West Texas Intermediate: DOWN 0.8 percent at $65.69 per barrel dan-rfj/lth