Stock markets diverge before Fed minutes

LONDON: European stock markets retreated Wednesday after Asia closed mostly higher, as traders awaited minutes from the Federal Reserve's most recent policy meeting.

While New York's three main indices ended in negative territory on Tuesday, Asian dealers were in upbeat mood, helping the dollar recover from recent losses against the yen, euro and pound.

But European markets were in the red in early afternoon dealing, while the pound was pushed lower by the first rise in the UK unemployment rate for 16 months.

Frankfurt and Paris meanwhile both struggled "after a string of disappointing" eurozone manufacturing numbers, noted Connor Campbell, financial analyst at Spreadex trading group.

But the share prices of mining giant Glencore and Lloyds Banking Group (LBG) enjoyed solid gains following well-received earnings updates.

Glencore jumped 4.0 percent to 400 pence after the group reported bumper 2017 profits on Wednesday and announced a higher-than-expected dividend payout.

Benefiting from rebounding commodities prices. the Swiss-based company said its net profit last year hit $5.7 billion (4.6 billion euros), a four-fold increase compared to 2016.

LBG shares climbed 2.4 percent to 69.5 pence after its profit after tax soared 52 percent last year, when the UK lender returned fully to the private sector following a state bailout.

LBG, which was financially rescued by the UK government following the height of the financial crisis a decade ago, said profit after tax jumped to £3.04 billion ($4.26 billion, 3.45 billion euros) in 2017 from £2.0 billion a year earlier.

- Fed minutes -

Later on Wednesday, the Fed minutes will be closely pored over for clues about the pace of US interest rates expected this year.

Stephen Innes, head of Asia-Pacific trading at OANDA, said that "while the prospect of higher interest rates will keep investors on edge, it's not like we're returning to double-digit levels".

Elsewhere, both main oil contracts were lower as a stronger dollar hit recent gains for crude.

Dealers were awaiting the release of oil stockpiles data from industry group American Petroleum Institute due Wednesday.

In cryptocurrency activity, bitcoin dropped to $11,188.39 from $11,705.72 on Tuesday.