Stocks rise and oil prices fall as FED prepares to cut interest rates

European stocks edged up, oil prices dropped for the fifth consecutive day, and the dollar stayed weak on Thursday, following Federal Reserve minutes that indicated U.S. interest rate cuts are expected to start in a few weeks, News.az reports.

The minutes revealed that the "vast majority" of policymakers believed a rate cut in September would be suitable if the data met expectations, confirming market predictions.
Stocks, after a phenomenal rebound from early-month lows plumbed after a bout of volatility, strove for gains.

European shares opened slightly higher, with the STOXX 600 index gaining 0.3%, helped by retail stocks, after a subdued session for Asian indexes.

Oil prices fell, however. At $75.96 a barrel, Brent futures were near the year's low, having lost nearly 6% in August so far as China's demand outlook weakens and looming rate cuts signal an expectation of a U.S. slowdown. [O/R]

A glut of economic data from major economies is due later in the day, including consumer confidence data for the eurozone and U.S. PMI and initial jobless claims figures.

MSCI's broadest index of Asia-Pacific shares outside Japan was mostly flat.

"What we have seen since yesterday is just a confirmation of broad expectations of Fed rate cuts in September," said Sandrine Perret, multi-asset portfolio manager at Unigestion.

Wall Street futures gauges pointed towards gains of about 0.7%.

The dollar index, was little changed at 101.21. It dipped to 100.92 overnight for the first time this year.

News.Az