By Sara Sjolin, MarketWatch
LONDON (MarketWatch) -- The two-day rally in European equities
ran out of steam on Wednesday as investors stayed on the sidelines
ahead of minutes from the U.S. Federal Reserve latest meeting,
which could give more hints on the first rate hike in the world's
largest economy.
The minutes are out at 7 p.m. London time, or 2 p.m. Eastern
Time, and "there's certainly going to be scope to pick through the
detail here for further clues as to what the Fed is thinking," said
Joao Monteiro, analyst at Valutrades, in a note.
After a prolonged period with record low interest rates,
investors are speculating when the Fed will start to tighten policy
and what impact it will have on the economy and the stock market.
Read: Yellen to stress patience on rates at Jackson Hole
In the U.K., minutes from the Bank of England's August meeting
showed two members of the Monetary Policy Committee voted in favor
of raising interest rates. Christian Schulz, senior economist at
Berenberg, said in a note that this is a sign the first rate hike
may come slightly earlier than markets currently expect.
Market reaction: The Stoxx Europe 600 index slipped 0.1% to
335.06, after on Tuesday posting its largest two-day gain since
April. Sharp losses for Carlsberg AS and Luxottica Group SpA
weighed on the benchmark.
France's CAC 40 index lost 0.5% to 4,231.49, while Germany's DAX
fell 0.5% to 9,284.13.
The U.K.'s FTSE 100 index dropped 0.3% to 6,756.84. Meanwhile,
the pound (GBPUSD) rose to as high as $1.6680 after the BOE
minutes, but fell back to $1.6640 at the latest check. Ahead of the
report, the pound traded at $1.6631, up from $1.6621 late Tuesday
in New York.
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