GLOBAL MARKETS-Dollar extends gain but shares retreat as Fed signals stimulus

* Fed policymakers zero in on strategy tweaks, minutes show
* Dollar claws back from 27-month low
* Graphic: 2020 asset performance http://tmsnrt.rs/2yaDPgn
* Graphic: World FX rates in 2020 http://tmsnrt.rs/2egbfVh

By Alwyn Scott
NEW YORK, Aug 19 (Reuters) - The dollar gained but equities,
gold and oil retreated on Wednesday after the Federal Reserve
suggested it could pursue aggressive stimulus measures for
longer than under its previous strategy, minutes from its last
policy meeting showed.
Economic recovery was highly uncertain and employment gains
in May and June had likely slowed, the U.S. central bank said,
noting that additional "substantial improvement" in the labor
market would hinge on a "broad and sustained" reopening of
business activity, according to minutes of the July 28-29
meeting released Wednesday. The readout on Fed discussions provide hints to further
action that the U.S. central bank could take in September. No
change in interest rate policy is expected until end-2021.
Before the Fed news, the S&P 500 and the Nasdaq hit all-time
highs as Apple Inc AAPL.O rose 1.4% to become the first
publicly-listed U.S. company to reach $2 trillion in market
capitalization, with strong results from retailers Target and
Lowe's also lifting sentiment. The S&P 500 on Tuesday completed its fastest recovery ever
from a bear market to confirm a bull market by closing above its
previous high of 3,386.15, set in February.
The dollar index =USD rose 0.805%, with the euro EUR=
down 0.67% to $1.1849.
The Japanese yen JPY= weakened 0.46% versus the greenback
at 105.88 per dollar.
Spot gold prices XAU= fell -2.99% to $1,941.06 an ounce.
Brent crude futures LCOc1 fell $0.18 to $45.28 a barrel.
U.S. crude futures CLc1 slid $0.04 to $42.85 a barrel.
On Wall Street, the Dow Jones Industrial Average .DJI fell
0.01%, the S&P 500 .SPX lost 0.19% and the Nasdaq Composite
.IXIC dropped 0.33%.
Crude prices eased on concerns U.S. fuel demand faces a slow
recovery amid stalled talks on an economic stimulus package in
Washington, offsetting support from a bigger-than-expected
drawdown in U.S. crude stocks.
Earlier, in Europe, travel and leisure shares rose, with
British Airways owner International Airlines Group ICAG.L up
5.3% on a British plan to use COVID-19 testing at London's
Heathrow Airport to help cut the time travelers have to spend in
quarantine. MSCI's benchmark for global equity markets .MIWD00000PUS
rose 0.25% to 573.33, while its index for emerging markets
stocks .MSCIEF rose 0.45%.
Europe's broad FTSEurofirst 300 index .FTEU3 added 0.68%
to 1,434.54. The Fed's actions to blunt the impact of the coronavirus
pandemic have helped lift riskier assets to all-time highs but
have reduced demand for safe-havens and battered the dollar.
Big-box chain Target Corp TGT.N jumped 12% after posting
its best quarterly comparable sales growth and online revenue
that nearly tripled. In Europe, travel and leisure shares rose, with British
Airways owner International Airlines Group ICAG.L up 5.3% on a
British plan to use COVID-19 testing at London's Heathrow
Airport to help cut the number of days travelers have to spend
in quarantine. Overnight, MSCI's broadest index of Asia-Pacific shares
outside of Japan .MIAPJ0000PUS fell 0.2%, retreating from a
seven-month high hit after the S&P 500's .SPX record.

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GRAPHIC-Emerging markets http://tmsnrt.rs/2ihRugV
GRAPHIC-World FX rates http://tmsnrt.rs/2egbfVh
GRAPHIC-MSCI All Country World Index Market Cap http://tmsnrt.rs/2EmTD6j
GRAPHIC-Global assets in 2020 http://tmsnrt.rs/2jvdmXl
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