(Adds U.S. market open, byline, dateline; previous LONDON)
* Wall St seesaws before release of FOMC minutes
* Oil retreats after OPEC reports output at 8-year highs
* Dollar gains ahead of Fed minutes release
By Herbert Lash
NEW YORK, Oct 12 Global equity markets traded
slightly lower and the dollar edged higher ahead of the release
of Federal Reserve minutes on Wednesday that should provide a
clearer picture on when policymakers will raise U.S. interest
Oil prices fell more than 1 percent after the Organization
of the Petroleum Exporting Countries reported its September
output at eight-year highs, offsetting optimism over the group's
pledge to bring a global crude glut under control.
Sterling rebounded slightly from a brutal selloff since last
week as British Prime Minister Theresa May's offer to give UK
lawmakers some scrutiny of the process behind plans to leave the
European Union calmed fears of a "hard Brexit" involving a clean
break from the single market.
U.S. equity markets seesawed before the release of minutes
of the Federal Open Market Committee's latest meeting at 2 p.m.,
while European markets and an index of global equity performance
"It's a battle in the market between faster growth and
higher rates. Markets are 'OK' with rates rising as long as they
can see the growth starting to boost the top line," said Brad
McMillan, chief investment officer at Commonwealth Financial in
"It's only when you see slower growth combined with higher
rates that the market is really going to react," he said.
The Dow Jones industrial average rose 20.34 points,
or 0.11 percent, to 18,149. The S&P 500 gained 3.07
points, or 0.14 percent, to 2,139.8 and the Nasdaq Composite
added 2.57 points, or 0.05 percent, to 5,249.36.
In Europe, the FTSEurofirst 300 index of leading
regional companies fell 0.37 percent to 1,337.16. MSCI's
all-country world equity index fell 0.39 percent.
The dollar index, which measures the greenback against a
basket of six major trading currencies, hit a seven-month high
at 98.018 ahead of the FOMC minutes.
Analysts said rising expectations that the U.S. central bank
will hike interested rates in December were boosting the dollar.
"We suspect that the market will be more alert to the
hawkish voices in the minutes," said Vassili Serebriakov, FX
strategist at Credit Agricole in New York.
The euro hit an 11-week low of $1.1005 in early U.S.
trading, and was last down 0.43 percent at $1.1006. The dollar
was last up 0.85 percent against the yen at 104.38 yen.
U.S. Treasury yields rose to their highest levels in four
months, with prices pressured by two auctions and growing
expectations of a Fed rate hike this year.
Yields on shorter-dated maturities, such as 2-year
notes, which are more sensitive to Fed policy
expectations, rose to their highest since early June ahead of
the Fed minutes. Two-year notes fell 1/32 in price to yield
The benchmark 10-year Treasury note were last
down 9/32 in price to yield 1.7921 percent, with yields earlier
rising above 1.80 percent for the first time since June 3.
Brent crude fell 61 cents to $51.80 a barrel, while
U.S. West Texas Intermediate crude slipped by 70 cents to
$50.09 a barrel.
(Reporting by Herbert Lash, additional reporting by Sam
Forgione and Dion Rabouin in New York; Editing by Meredith