(Updated at 2:16 p.m. (1816 GMT))

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European shares supported by Ukraine ceasefire

expectations

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Sterling rises after "hawkish" BoE rate cut

By Chris Prentice and Samuel Indyk

NEW YORK/LONDON, Aug 7 (Reuters) -

European stocks closed at a one-week high on strong

financial stocks and hopes of a Ukraine ceasefire, while global

equities and major Wall Street indexes turned lower on Thursday.

Oil price turned lower after the Kremlin said Russian

President Vladimir Putin would meet with U.S. President Donald

Trump.

Prices of gold, seen as a safe haven in volatile times,

extended gains to a two-week high.

Wall Street was down following a report that

Federal Reserve Governor Christopher Waller

was Trump's top candidate to become the central bank chair,

raising concerns over the Federal Reserve's independence.

MSCI's gauge of stocks across the globe

fell 0.19 point, or 0.02%, to 933.04.

The Dow Jones Industrial Average fell 0.77% to

43,851.17, the S&P 500 retreated 0.47% to 6,315.33, and

the Nasdaq Composite gave up 0.30% to 21,104.91.

" are persistent risks to the downside. Downside

surprises in official data are increasing," Capital.com analyst

Kyle Rodda wrote in a note. "Valuations are also stretched, with

forward price to earnings hovering around the highest in four

years. And trade uncertainty persists."

Higher U.S. tariffs on imports from dozens of countries kicked

in on Thursday, raising the average U.S. import duty to the

highest in a century.

European shares logged their biggest daily rise in over

two weeks on Thursday, boosted by financial stocks as investors

weighed mixed corporate earnings and U.S. tariffs.

The pan-European STOXX 600 index closed at a

one-week high. Europe's FTSEurofirst 300 index rose

0.93%.

Plans for a meeting between Trump and Putin over the war in

Ukraine also helped sentiment in European equities and

underpinned the euro.

A ceasefire "would be an extra positive," said Emmanuel Cau,

Barclays head of European equity strategy.

The Bank of England cut interest rates, but four of its nine

policymakers, worried about inflation, voted to keep rates

unchanged.

The split vote suggested the BoE's run of rate cuts might be

nearing an end. Sterling strengthened 0.47% to $1.3416.

"The vote split is clearly a lot more hawkish than I was

expecting," said Dominic Bunning, head of G10 FX strategy at

Nomura.

Japanese shares earlier hit a record high. MSCI's broadest

index of Asia-Pacific shares outside Japan

closed up 1.03%, as Japan's Nikkei gained 0.65%.

Taiwan's stock benchmark jumped as much as 2.6% to a

more than one-year peak. Shares in chipmaker TSMC,

which this year announced additional investment in its U.S.

production facilities and so is expected to be relatively

unscathed by the U.S. tariff on imported chips, soared to a

record high.

The U.S. dollar gained 0.12% against other currencies

, with the euro down 0.21% at $1.1634.

The yield on benchmark U.S. 10-year notes

rose 1.4 basis points to 4.246%.

In commodities, spot gold rose 0.68% to $3,391.39

an ounce.

Global oil prices wiped out earlier gains, with Brent

crude futures down 0.45% at $66.59 per barrel and U.S.

crude 0.51% lower at $64.02.