Global stock markets drifted Tuesday with dealers on tenterhooks on the first day of key monetary policy meetings for the US Federal Reserve and Bank of Japan.

Around 1030 GMT, London's benchmark FTSE 100 index was up 0.5 percent compared with the close on Monday.

In the eurozone, Frankfurt's DAX 30 won 0.6 percent and the Paris CAC edged 0.3 percent higher.

The Federal Reserve and Bank of Japan were kicking off two-day policy meetings on Tuesday.

The Fed heads into one of its most keenly awaited gatherings after weeks of speculation that has fanned volatility across global trading floors, with investors split on whether the US central bank will lift interest rates.

At the same time opinion is divided on what the Bank of Japan's intentions are, with expectations for fresh stimulus tempered by a lack of concrete promises from Tokyo, despite weak Japanese growth and almost non-existent inflation.

"Stocks markets are not seeing much movement on Tuesday," noted analyst Jasper Lawler at trading firm CMC Markets.

"Investing decisions are being restrained by this week’s central bank policy meetings which have the potential to upend current thinking on the low interest rate environment."

Asian markets also drifted and the dollar was virtually unmoved with investors also biding their time.

Tokyo's Nikkei index swung to and fro through the day before ending 0.2 percent lower.

Hong Kong shed 0.1 percent by the close and Shanghai lost 0.1 percent following healthy gains Monday.

- Potential for volatility -

"It's not unusual for traders to adopt a more cautious approach ahead of these events, particularly when we have two on the same day, both of which have the potential to create huge amounts of volatility in the markets," said Oanda analyst Craig Erlam.

In company news, GlaxoSmithKline shares shed 0.6 percent to £16.36 pence, as investors reacted to a new boss at the British drugs giant.

GSK said it had appointed Emma Walmsley, its head of consumer healthcare, to lead the group and find new treatments in a fast-consolidating sector.

Walmsley, who joined GSK from French cosmetics giant L'Oreal six years ago and has a background in marketing, will take up her new post at the end of March.

Back in Tokyo, Japanese airbag supplier Takata tumbled 11.6 percent after a report said some potential buyers were considering bankruptcy proceedings if they are successful in its purchase.

The firm has been hit by the global auto industry's biggest-ever safety recall over its exploding bags. Bloomberg News said private equity firms and auto parts makers were preparing offers for the company, and some were considering the drastic bankruptcy action to mitigate the liabilities.

- Key figures around 1030 GMT -

London - FTSE 100: UP 0.5 percent at 6,849.80 

Frankfurt - DAX 30: UP 0.6 percent at 10,431

Paris - CAC 40: UP 0.3 percent at 4,407.90 

EURO STOXX 50: UP 0.3 percent at 2,976.20

Tokyo - Nikkei 225: DOWN 0.2 percent at 16,492.15 (close)

Shanghai - Composite: DOWN 0.1 percent at 3,023.00 (close)

Hong Kong - Hang Seng: DOWN 0.1 percent at 23530.86 (close)

New York - DOW: DOWN less than 0.1 percent at 18,120.17 (close)

Euro/dollar: UP at $1.1190 from $1.1175 late Monday

Dollar/yen: DOWN at 101.74 yen from 101.88 yen 

Pound/dollar: DOWN at $1.3013 from $1.3028

Source: AFP