* Wall Street keeps gains after release of Fed minutes
* Yields slip after U.S. Fed meeting minutes
* Oil prices rise on expected drop in U.S. inventories
* Dollar edges down from 14-year high
(Updates to afternoon U.S. trading, adds settled oil prices)
By Saqib Iqbal Ahmed
NEW YORK, Jan 4 Stock indexes around the world
gained on Wednesday, bolstered by upbeat global economic data
and by minutes from the Federal Reserve's December meeting,
which showed policymakers thought the U.S. economy could grow
more quickly because of fiscal stimulus under the Trump
The dollar retreated from a 14-year high against a basket of
currencies, briefly hitting a session low, while U.S. Treasury
debt yields slipped after the release of the minutes.
The minutes showed how broadly views within the Fed are
shifting in response to U.S. President-elect Donald Trump's
promises of tax cuts, infrastructure spending and deregulation.
MSCI's world index, which tracks shares in
46 countries, rose 0.84 percent to a three-week high.
The index found support from a batch of rosy economic
reports from Europe, and got a boost from a second day of
strength in U.S. stocks.
"Clearly, some of the members on the committee are taking a
look at proposed fiscal changes, whether that's tax cuts or
infrastructure spending," said Chris Zaccarelli, Chief
Investment Officer for Cornerstone Financial Partners.
U.S. stocks have surged over the past two months on
expectations that Trump will stimulate the economy with tax cuts
and infrastructure spending, and eliminate regulations in the
"It's confirmation of what people were already expecting,"
The Dow Jones Industrial Average rose 61.65 points,
or 0.31 percent, to 19,943.41, the S&P 500 gained 13.49
points, or 0.60 percent, to 2,271.32 and the Nasdaq Composite
added 50.69 points, or 0.93 percent, to 5,479.77.
Gains on Wall Street were supported by strength in consumer
European shares edged down from a one-year high with
retailers in focus after standout faller Next cut its
profit guidance and cautioned on future trade. Europe's broad
FTSEurofirst 300 index closed little changed at
The dollar, which rose to its highest in 14 years against
the euro and a basket of major currencies on Tuesday, touched a
session low of 102.39 following the release of the Fed minutes,
before recovering some ground.
The dollar index - which measures the greenback
against a basket of six major rivals - was down 0.47 percent to
102.72, having hit a peak of 103.82 on Tuesday.
Meanwhile, oil prices rose on expectations that U.S. crude
inventories are falling and signs that oil producers will stick
to agreed output cuts that took effect this week.
Brent crude settled up 99 cents, or 1.78 percent, at
$56.46 a barrel, and U.S. crude settled up 93 cents, or
1.78 percent, at $53.26.
In bond markets, the Fed minutes sent U.S. Treasury debt
yields lower as the policy meeting struck a more uncertain tone
than the market had expected.
While the minutes showed many policymakers considering
faster interest rate increases in response to a quicker pace of
economic growth, they also spelled out the downside risks which
could limit economic growth, such as trade barriers and the
Both U.S. 10-year note and 30-year bond yields briefly
touched session lows after the release of the Fed minutes.
The U.S. 10-year note was down 4/32 in price to
yield 2.465 percent, compared with 2.454 percent late on
Gold touched a near-four week high helped by the retreating
dollar and increased demand from major consumers China and
India. Spot gold prices were up 0.38 percent at
(Reporting by Saqib Iqbal Ahmed; Additional reporting by
Gertrude Chavez-Dreyfuss in New York and Noel Randewich in Noel
Randewich; Editing by Nick Zieminski)