The FTSE 100 was still in the red, but the Euro Stoxx 50 was up 0.5%.
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On equity markets Tokyo ended 0.6 percent higher and Sydney edged up 0.1 percent, helped by a rally in flagship airline Qantas after the firm posted an 80 percent jump in annual net profit and announced a resumption of dividend payments for the first time in seven years.
The Dollar index edged 0.1% higher to 94.63 as the market eagerly awaits Janet Yellen’s speech this Friday at Jackson Hole.
Market expectations have increased that Yellen might indicate a clearer timeframe for the next US rate hike after strong housing data this week and hawkish comments by other Fed officials, but many analysts expect her to strike a more neutral stance.
“The markets now have March priced in for the next rate hike, and if Yellen is seriously determined to move earlier, she must take advantage of Friday’s opportunity to drive that message home”, Erlam said.
Five of the 10 major S&P 500 indexes were higher, led by a 0.2 per cent rise in financials.
Expectations for a Fed rate hike in September have risen to 24 percent from 21 percent on Tuesday, Reuters reported, citing CME Group’s FedWatch.
It was flat at 100.28 yen after nudging below 100 yen the previous day to 99.925. “The U.S. dollar has sold off enough in recent weeks that the risks look asymmetric to the topside”.
S&P 500 e-minis were up 1.25 points, or 0.06 per cent, with 146,241 contracts traded.
Shares of Mylan were set to rebound a little on Thursday, rising 2.6% in premarket trade as the company said that it would immediately aim to cut costs of its lifesaving medicatio (http://www.marketwatch.com/story/mylan-cuts-prices-for-epipens-after-pressure-from-congress-clinton-2016-08-25) n. “Any hawkish comments could turn gold prices bearish next week”, Lai said.
The dollar is likely poised for a stronger recovery that could take it to 102 against the yen, she said.
“The dollar has finally caught a bid”, wrote Kathy Lien, managing director of FX strategy at BK Asset Management, who said in a note that the USA unit was likely poised for a stronger recovery that could take it to 102 against the yen. Against the euro, it was changing hands at $1.12740 EUR= .
Global benchmark Brent crude futures were down 74 cents at $49.22 a barrel at 3.09pm, after touching an intraday low of $49.07.
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Energy stocks finished off 0.3%, as investors tracked a sharp decline in oil prices after the US Energy Information Administration (EIA) reported an unexpected build of US commercial crude inventories last week.
