(MENAFN- Gulf Times) European and US stock markets rose yesterday as investors looked ahead to the release of Federal Reserve minutes for clues on the US interest rate outlook.
'European stock markets remain strong as the bullish sentiment that returned to the markets at the beginning of the week is still with us, said market analyst David Madden at CMC Markets UK.
The easing of tensions between the US and North Korea has seen stocks rebound from a global sell-off last week.
'We have recouped a lot of the ground that was lost because of the tensions that escalated last week, but we have not fully recovered, added Madden.
London, Paris and Frankfurt all closed 0.7% higher at 7,433.03 points, 5,176.61 points and 12,263.86 points respectively.
The EURO STOXX 50 closed 0.7% up at 3,485.71 points.
Wall Street stocks were also higher approaching midday, with the Dow Jones Industrial Average up 0.3%.
'Investors will be analysing the minutes from the July 25-26 FOMC meeting closely this afternoon, looking for clues as to when the Fed might begin reducing its massive balance sheet, said analysts at Briefing.com.
The Fed has signalled it wants to begin trimming 'relatively soon its $4.5tn in assets it acquired during the global financial crisis to prop up the US economy, the timing and pace of which could send up borrowing costs.
'In addition, any language surrounding inflation will be of interest as its stubbornness to pick up may force the US central bank to settle for just two rate hikes this year instead of the three that it had originally planned for, the analysts added.
Elsewhere, calm returned to Asian stock markets, with equities stabilising after a two-day rally, as the dollar strengthened on upbeat US economic data on Tuesday.
The Nikkei, which made strong gains on Tuesday after finishing at its lowest level for more than three months the previous day, ended marginally down in light trade, even as the weakening yen boosted exporters.
Oil prices fluctuated and then fell after the release of the latest information from the US Energy Information Administration on stockpiles.
While crude stockpiles dropped much more than analysts had anticipated, gasoline stockpiles unexpectedly rose modestly despite it being the peak of the US vacation season.
'The energy market spiked after the announcement, but then dropped to new lows of the session as the gasoline stockpile figures suggests that demand is weak, said CMC Markets's Madden.
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