Stock markets were mixed on Wednesday, with some boosted by US stimulus hopes and signs of easing virus infections -- as well as improvements across vaccination programmes.

News that former European Central Bank chief Mario Draghi might become Italy's next prime minister gave stocks a fillip in Milan.

Draghi is credited with saving the eurozone in 2012 at the height of the debt crisis.

A recovery for equities from last week's rout was tempered however by worries that valuations might be a little frothy, analysts said.

While most indices rallied, Hong Kong and Shanghai were hit as China's central bank sucked more cash out of financial markets to avert a bubble.

The dollar advanced, but Wall Street's Dow Jones index slipped in early trading.

Oil prices held up after hitting pre-pandemic levels on Tuesday, but some worried the improvement would give producers an excuse to begin hiking output again.

"This week sees a return to more normalised drivers of sentiment, with US stimulus, vaccinations, and the prospect of an economic recovery back at the forefront," noted Joshua Mahony, senior market analyst at IG trading group.

In the US, the Senate on Tuesday took a tentative step towards pushing through a massive economic aid package proposed by President Joe Biden.

The development came as data showed infections and deaths in the United States -- the worst-hit country -- appeared to be easing.

Experts said this was the result of more people wearing masks and social distancing, along with the end of the holiday season.

Vaccination programmes in the United States and Britain were picking up pace, although the European Union was struggling to get up to speed owing to supply problems.

The University of Oxford on Wednesday said its vaccine produced with AstraZeneca significantly reduces virus transmission and is highly protective after a single dose.

British pharmaceutical group GlaxoSmithKline and German biotech firm CureVac meanwhile announced plans to jointly develop a coronavirus vaccine with the potential to counter multi-variants of Covid-19.

New York - Dow: DOWN 0.1 percent at 30,652.11 points

EURO STOXX 50: UP 0.5 percent at 3,606.84

London - FTSE 100: DOWN 0.1 percent at 6,510.35

Frankfurt - DAX 30: UP 0.4 percent at 13,884.89

Paris - CAC 40: UP 0.1 percent at 5,569.14

Milan - FTSE MIB: UP 2.2 percent at 22,554.12

Tokyo - Nikkei 225: UP 1.0 percent at 28,646.50 (close)

Hong Kong - Hang Seng: UP 0.2 percent at 29,307.46 (close)

Shanghai - Composite: DOWN 0.5 percent at 3,517.31 (close)

Euro/dollar: DOWN at $1.2024 from $1.2043 at 2205 GMT

Dollar/yen: UP at 105.04 yen from 104.96 yen

Pound/dollar: DOWN at $1.3646 from $1.3664

Euro/pound: FLAT at 88.11 pence

West Texas Intermediate: UP 1.1 percent at $55.37 per barrel

Brent North Sea crude: UP 1.0 percent at $58.06 per barrel

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