Reuters: US Dollar Report: GLOBAL MARKETS-Shares dip, dollar steady before Fed

Reuters: US Dollar Report Reuters.com is your source for breaking news, business, financial and investing news, including personal finance and stocks. Reuters is the leading global provider of news, financial information and technology solutions to the world's media, financial institutions, businesses and individuals. // via fulltextrssfeed.com

GLOBAL MARKETS-Shares dip, dollar steady before Fed Jul 31st 2013, 07:47 Wed Jul 31, 2013 3:47am EDT * Market subdued before U.S. central bank meeting * Fed to release post-meeting statement at 1800 GMT * Euro area unemployment, inflation in focus * Weak German retail sales depress European shares By Richard Hubbard LONDON, July 31 (Reuters) - World shares and oil dipped and the dollar held firm on Wednesday in muted trade as investors steered clear of big bets ahead of a Federal Reserve meeting and data offering a window on the health of the U.S. economy. Global growth in the months ahead is pegged to the rate of recovery in the U.S. economy and investors are worried an early withdrawal of support from the U.S. central bank by tapering back in its bond purchases could threaten the outlook. "Traders globally seem to be in a wait-and-see mode before the outcome of the Fed's meeting on the timing of quantitative easing tapering," said Mitsushige Akino, chief fund manager at Ichiyoshi Asset Management in Tokyo. A fall in retail sales in Europe's economic powerhouse Germany added to investor concerns there, leading the broad FTSEurofirst 300 index down 0.3 percent and the euro zone's blue-chip Euro STOXX 50 index down 0.4 percent in early trade. Ahead of the Fed policy statement due at 1800 GMT, the dollar index, which tracks the greenback's performance against a basket of major currencies, had inched up 0.1 percent to 81.877. The index had hit a five-week trough earlier this week as investors bet the Fed would reassure markets that interest rates would remain low for a long time even if it started scaling back stimulus this year. Meetings of other major developed world central banks in coming days, including the European Central Bank on Thursday, and the key U.S. payrolls report on Friday are also prompting investors to stay on the sidelines. Following a weak session for equities in Asia, the MSCI world equity index was down 0.25 percent. Chinese stocks rose 0.5 percent after the government pledged to keep growth stable in the second half of the year. Brent crude prices eased 0.2 percent to around $106.70 a barrel, extending a 0.6 percent decline on Tuesday but remain up 4.5 percent this month and on course for their best monthly gain since August last year. Gold gained 0.5 percent. It is up 8.2 percent so far this month, on track to snap a three-month losing run and mark its biggest monthly rise since January 2012, but it is down 20 percent since the beginning of 2013. German bonds were lower though traders said this was largely due to investors making way for an upcoming sale of new 30-year government bonds. The selling lifted the current German 30-year yield by 2 basis points to 2.5 percent. Link this Share this Digg this Email Reprints

You are receiving this email because you subscribed to this feed at blogtrottr.com. If you no longer wish to receive these emails, you can unsubscribe from this feed, or manage all your subscriptions