June 18, 2013 / 7:37 AM / 4 years ago

GLOBAL MARKETS-Dollar, shares subdued as Fed keeps markets on edge

* European shares open down 0.3 percent, Nikkei ends down
0.2 pct
    * Dollar rises vs yen, choppy against basket of key
currencies
    * Oil inches up, gold falls

    By Marc Jones
    LONDON, June 18 (Reuters) - Global markets mostly stuck to
tight ranges on Tuesday, with uncertainty about the future of
the U.S. monetary stimulus programme keeping investors on edge
as the Federal Reserve prepared to meet.
    The U.S. central bank kicks off a two-day meeting later in
the day and markets are on alert for any guidance on when and
how quickly it will look to wind down its bond buying programme.
    After a calmer day on Asian markets, European shares
 opened down 0.3 percent, giving back some of the
previous day's gains.
    "I don't think we will get any great retreat from the
expectation that tapering (slowing of bond purchases) is really
quite imminent," said Nick Beecroft senior market analyst at
Saxo Bank. 
    "I think the Fed is secretly sitting with its fingers
crossed, hoping that the froth continues to be skimmed off asset
markets. I don't think they will be bothered at all if the
S&P500 or other risk markets fall 5 or 10 percent, as long as it
didn't happen in a (single) day."
    The dollar hovered above a two-month low against the yen
 while 
    Comments from European Central Bank chief Mario Draghi that
the bank remained ready to cut rates again if needed added some
extra pressure to an already slightly lower euro. 
    In the debt markets, German Bund futures dipped in
line with U.S. Treasuries on the expectations the Fed may signal
it is moving closer to trimming its bond purchases. Analysts
also had one eye on the release of Germany's ZEW business
sentiment survey at 0900 GMT.

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