European stock markets steady before German poll

European equity markets steadied on Friday as cautious investors paused after a Fed-inspired rally and ahead of weekend elections in eurozone powerhouse Germany. London's FTSE 100 index of top companies eased 0.05 percent to stand at 6,622.20 points in midday deals. Frankfurt's DAX 30 firmed 0.11 percent to 8,704.08 points and the CAC 40 in Paris rose 0.06 percent to 4,208.19. The European single currency edged up to $1.3532 from $1.3531 late in New York on Thursday. The dollar fell to 99.39 yen from 99.45. In Germany, Chancellor Angela Merkel's conservatives are widely expected to win a third term in this Sunday's general election, but an uneasy coalition with the opposition Social Democratic Party appears increasingly likely. "The German Bundestag elections are one of the most important events on the international scene in 2013, and are a key step towards the European Union's future," said market strategist Brenda Kelly at trading firm IG . "The political-economic role that Germany plays in Europe is crucial for the developments faced by the eurozone in times to come, so it is little surprise that there is a degree of caution in equity markets as we head into the end of the week." Germany's upstart anti-euro party Alternative for Germany (AfD) could capture seats and scupper Merkel's chance of holding on to her centre-right coalition, according to a new poll this week. Global stock markets had rallied on Thursday, with the DAX hitting a record intra-day peak, as traders welcomed the US Federal Reserve's surprise decision to keep its aggressive stimulus programme intact. Asian stock markets dipped on profit-taking Friday after the global rally powered by the Fed's decision to maintain its vast bond-buying stimulus at $85 billion per month. Tokyo equities closed down 0.16 percent, while Mumbai plunged 1.85 percent after a surprise decision to by India to hike its main interest rate on fears of rising inflation in the country. Markets in Seoul, Shanghai, Hong Kong and Taiwan were closed for public holidays. Back in Britain, sentiment was cheered by a strong stock market debut for Britain's London-focused estate agency Foxtons. Foxtons, which concentrates its business on London where house prices are rising much faster than elsewhere in Britain, was valued at £649 million ($1.04 billion, 769 million euros). The valuation quickly rose as investors sent its opening share price of 230 pence surging to 279 pence in late morning deals. Royal Bank of Scotland shares dropped 1.27 percent to 364.3 pence after the state-rescued lender sold a further 20 percent of its insurance unit Direct Line Group for £630 million. Elsewhere, the British pound stabilised against the euro and the dollar as investors weighed news that state borrowing fell by more than expected in August. And on the London Bullion Market, gold prices declined to $1,357.20 an ounce from $1,365.50.