BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - European stocks are seen opening mixed on Thursday after the Federal Reserve's July meeting minutes revealed growing concern over inflation and a divided policy committee, keeping a September rate hike possible.
The U.S. Treasury Department's move to buy back more long-term debt cooled a bond sell-off, but critics warned it could accelerate inflation and put pressure on the Fed to support fiscal objectives.
With the Fed and the Treasury working in sort of opposite directions, analysts say that the Fed may be forced to raise interest rates more aggressively rather than leave then unchanged, if inflation stays flat or rises.
Rising geopolitical tensions may also keep investors on edge as U.S.-Iran talks remain deadlocked.
Oil prices extended gains for a fourth consecutive session as U.S. President Donald Trump escalated economic pressure on Iran, describing it as the 'most crushing economic operation' ever imposed on a country.
Trump threatened economic punishment against any country whose banks, businesses, airports or government entities continue to provide Iran with what he called a 'lifeline.'
Asked about the Iran war, Trump reiterated that the U.S. has 'complete control' of the Strait of Hormuz and that the talks could resume 'maybe at some point.'
Asian markets were mostly higher, with South Korea's Kospi surging over 6 percent and Japan's Nikkei adding more than 1 percent after chipmaker SK Hynix announced a bumper 40 trillion won ($28.3 billion) share repurchase program.
The U.S. dollar index hovered near three-month lows. Gold traded 0.7 percent lower at $4,491 an ounce after surging more than 4 percent on Wednesday and hitting its highest level since June 2 at $4,527.67 earlier in the day following a surprise liquidity support announcement by the U.S. Treasury.
Brent crude prices remained elevated around $92 a barrel after rising more than 3 percent so far this week.
U.S. stocks eked out modest gains overnight as government bond yields eased from recent highs after an announcement by the Treasury Department that it would buy back more longer-term debt, covering maturities of between 10 and 30 years in a bid to keep borrowing costs in check.
Investors also cheered Moderna's successful trial results for an experimental skin cancer therapy and the pausing of new U.S. tariffs on Canadian goods, but markets gave back some ground in afternoon trading after minutes from the Federal Reserve's July meeting showed uneasiness among members regarding inflation.
Many officials saw the scope for higher interest rates if inflation doesn't soon slow. The S&P 500 rose 0.2 percent to snap its three-day losing streak. The narrower Dow and the tech-heavy Nasdaq also gained around 0.2 percent each.
European stocks ended little changed on Wednesday due to inflation and interest-rate concerns.
The pan-European STOXX 600 slipped 0.1 percent. While the U.K.'s FTSE 100 inched up 0.1 percent, the German DAX and France's CAC 40 both slid around 0.1 percent.
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