US stocks edge up as Fed minutes dampen hike expectations

Wall Street stocks edged higher Wednesday as minutes from the Federal Reserve's July meeting boosted expectations the US central bank was not likely to hike rates in September.

Worries about Fed minutes had been a drag on bourses in Asia and Europe, prior to the 1800 GMT release of the minutes. US stocks has also been in negative territory before the release, in part due to disappointing earnings from retailers Target and Lowe's.

The record of the July Fed meeting showed policy makers believed risks to the US economy had lessened but wanted to keep their interest rate policy "options open."

Policy makers also believed the global financial system had held up well to the shock created by Britain's June vote to exit the European Union, the minutes said.

"Market expectations for a rate hike in September are still low, and this committee tends to be cautious," said Sara Johnson and Ozlem Yaylaci, economists at IHS Markit.

That helped the S&P 500 to a 0.2 percent rise for the day, and the Dow Jones Industrial Average to a 0.1 percent gain.

Earlier, Frankfurt's DAX 30 had fallen 1.3 percent, and the Paris CAC 40 lost 1.0 percent.

London stocks dropped 0.5 percent, winning some support from encouraging unemployment figures -- the British rate was unchanged at 4.9 percent and job-loss claims fell in July despite Brexit vote, which is expected to hurt economic growth and investment.

Equity markets in Hong Kong and Shanghai both dipped, but Tokyo's benchmark Nikkei 225 index climbed 0.9 percent, snapping a two-day losing streak as a drop in the haven yen currency lifted exporters.

The dollar edged lower against the euro and the yen as traders pushed back the time-frame for Fed rate hikes.

"The minutes' cautious undertones suggested a Fed on hold on rates over the foreseeable future which is weighing on the dollar," said Joe Manimbo, a currency market analyst at Western Union.

Oil prices pushed modestly higher as the weekly US inventories report showed significant declines in stockpiles of both crude and gasoline.

- Key figures at 2100 GMT -

New York - DOW: UP 0.1 percent at 18,573.94 (close)

New York - S&P 500: UP: 0.2 percent at 2,182.22 (close)

New York - Nasdaq: UP less than 0.1 percent to 5,228.66 (close)

London - FTSE 100: DOWN 0.5 percent at 6,859.15 (close)

Frankfurt - DAX 30: DOWN 1.3 percent at 10,537.67 (close)

Paris - CAC 40: DOWN 1.0 percent at 4,417.68 (close)

EURO STOXX 50: DOWN 1.2 percent at 2,980.54 (close)

Tokyo - Nikkei 225: UP 0.9 percent at 16,745.64 (close)

Shanghai - Composite: DOWN less than 0.1 percent at 3,109.55 (close)

Hong Kong - Hang Seng: DOWN 0.5 percent at 22,799.78 (close)

Euro/dollar: UP at $1.1287 from $1.1276 Tuesday

Pound/dollar: DOWN at $1.3038 from $1.3044

Dollar/yen: DOWN at 100.28 yen from 100.30 yen