Stocks mixed after Fed minutes, oil rebounds

Sydney - Global equities were mixed after US stocks pulled back from record highs as minutes from the Federal Reserve’s latest meeting showed officials confident they can raise rates gradually.

Oil rebounded while the dollar was little changed.

European shares were flat as investors weighed a fresh batch of corporate earnings. Japan’s Topix pared earlier losses while shares in Hong Kong slumped.

The Bloomberg Dollar Spot Index was steady after Wednesday’s retreat, while Treasuries maintained the previous session’s advance.

Crude climbed back above $54 ahead of government data on stockpiles, while basic metals prices declined for a third day.

A rally that brought the value of global equities to more than $70trn and the MSCI All-Country World Index to a record lost momentum as money managers grappled with political uncertainty and the Fed’s schedule for lifting interest rates.

US President Donald Trump intends to release a health plan in early to mid-March, ahead of tackling his promised tax overhaul, while traders are also watching developments in French elections and the UK’s Brexit efforts.

Fed policy makers expressed confidence they can take their time raising rates as there’s little threat inflation will suddenly accelerate, according to the minutes.

Officials wrestled with uncertainty on issues ranging from the Trump administration’s fiscal stimulus plans to the headwinds a rising dollar may pose.

The odds for an increase in March retreated to 36%. Allianz chief economic adviser Mohamed El-Erian said that seems "too low."

What traders are likely to be watching out for:

Trump will meet Thursday with corporate chief executives to discuss job creation and his plans to craft new tax and trade policies.

Billionaire Warren Buffett releases his annual letter to shareholders with Berkshire Hathaway’s earnings over the weekend.

Here are the main moves in markets:

Stocks

The MSCI All-Country World Index rose less than 0.1% as of 8:20 in London. The Stoxx Europe 600 Index was little changed after ending flat on Wednesday.

Japan’s Topix declined less than 0.1%, following three days of gains that took it to the highest since December 2015. The index pared an earlier loss of as much as 0.6%.  

The Hang Seng China Enterprises Index dropped 0.2%, after a 1.2% jump on Wednesday, while the Shanghai Composite Index fell 0.3%.

Futures on the S&P 500 were little changed after the benchmark index lost 0.1% on Wednesday.

Currencies

The Bloomberg Dollar Spot Index was little changed, after falling 0.2% on Wednesday. The yen was flat at 113.30 per dollar, following a 0.3% gain the previous day.

The Korean won rose 0.4%, climbing for a third day.

The central bank kept its policy interest rate unchanged for an eighth month as improvements in exports and inflation offset concerns over a political scandal that’s hurt domestic confidence.

The euro was little changed at $1.0554 after gaining 0.2% on Wednesday. The South African rand strengthened 0.5%.

Bonds

The yield on 10-year Treasuries was little changed at 2.42%, after sliding two basis points on Wednesday. Australian 10-year yields dropped five basis points to 2.79%.  

Commodities

Oil climbed 1.1% to $54.19 a barrel, rebounding from a 0.9% drop in the previous session.

An industry report showed US crude stockpiles fell, in a sign that government data due on Thursday may show the first contraction this year.

Copper fell 0.9% in London, dropping for a third day, while aluminum slipped amid increasing stockpiles in China. Iron ore retreated 1%.