Berliner Tageblatt - Markets stabilise ahead of Fed minutes

Wall Street opened with modest gains, while European stocks dipped.

Stocks sank on Tuesday and in Asian trading on Wednesday as strong economic data fanned expectations that US borrowing costs will continue to rise and stay high for some time.

The dollar rose against the euro and pound but dipped against the yen ahead of the release.

Oil prices fell on renewed recession risks.

"The higher (US) interest rates stay, the less relative appeal stocks have, particularly as we are about to hit some serious earnings headwinds," Neil Wilson, analyst at trading firm Finalto, told AFP.

The minutes will be closely scrutinised "in the wake of data showing a more resilient (US) labour market and stickier inflation than many had expected", he added.

Briefing.com analyst Patrick O'Hare noted that the meeting was held before the latest inflation and employment data, which showed inflation only slowly coming down and the labour market to be robust.

"Accordingly, the market should be more sensitive to views in the minutes that emphasize a need to take rates higher, and leave them at higher levels for longer, than it is to views with a softer-sounding approach," said O'Hare.

The recent data has essentially put to bed any talk of the Fed pausing its rate hikes and even cutting rates by the end of the year.

"A tight labour market and resilient consumer demand could goad the Federal Reserve to maintain its rate hiking campaign into the summertime," said Jeffrey Roach, chief economist for LPL Financial.

"Investors should expect volatility until markets and central bankers come to agreement on the expected path for interest rates."

Adding to the dark mood on Tuesday were downbeat 2023 projections from retail titans Walmart and Home Depot, which noted the impact of inflation and higher interest rates on consumer spending.

- Key figures around 1430 GMT -

London - FTSE 100: DOWN 0.8 percent at 7,917.76 points

Frankfurt - DAX: DOWN 0.2 percent at 15,367.21

Paris - CAC 40: DOWN 0.3 percent at 7,250.49

EURO STOXX 50: DOWN 0.4 percent at 4,235.65

New York - Dow: UP 0.1 percent at 33,170.84

Tokyo - Nikkei 225: DOWN 1.3 percent at 27,104.32 (close)

Hong Kong - Hang Seng Index: DOWN 0.5 percent at 20,423.84 (close)

Shanghai - Composite: DOWN 0.5 percent at 3,291.15 (close)

Euro/dollar: DOWN at $1.0644 from $1.0648 on Tuesday

Pound/dollar: DOWN at $1.2103 from $1.2112

Euro/pound: UP at 87.95 pence from 87.91 pence

Dollar/yen: DOWN at 134.60 yen from 135.01 yen

West Texas Intermediate: DOWN 0.9 percent at $75.70 per barrel

Brent North Sea crude: DOWN 1.0 percent at $82.21 per barrel

burs-rl/cw

J.Fankhauser--BTB