Indian billionaire investor Rakesh Jhunjhunwala says he's very upbeat about his country's growth potential after the country underwent a massive banking crisis and the rollout...Asia Economyread more
Morgan Stanley has cut its bear (worst-case) forecast on Tesla's stock from $97 to just $10, citing concerns about the company's increased debt load and geopolitical exposure.Autosread more
Home Depot on Tuesday reported fiscal first-quarter earnings that beat analysts expectations, despite a damp start to the spring in much of the U.S.Retailread more
There's more pain ahead for the U.S. and China amid their bilateral trade dispute, according to one expert.China Politicsread more
Alphabet Inc's Google said Tuesday that keeping phones up to date and secure was in "everyone's best interests," shortly after the U.S. temporarily eased some trade...Technologyread more
You know there's an underlying problem when investment firms start to cut exposure to a particular asset class.Commentaryread more
While Trump's lawyers had argued that the committee's subpoena did not have a legitimate legislative purpose — and was therefore invalid — Mehta took a broader view.Politicsread more
The issue of corporate debt has surfaced as companies continue to use the low rates the Fed has provided to lever up their balance sheets.The Fedread more
A record 257.4 million travelers are expected to opt for U.S. airlines for travel this summer, the 10th consecutive annual increase, a trade group forecast on Tuesday.Airlinesread more
The announcement comes amid a wave of store closures across the country this year.Retailread more
* European stocks struggle early on, factory data weak
* Dollar trims overnight gains after Fed stays neutral
* Japan and China markets shut for public holidays
* CNBC report lifts China trade deal hopes
* Bank of England expected to keep rates on hold
* World FX rates in 2019 http://tmsnrt.rs/2egbfVh
* Asian stock markets : https://tmsnrt.rs/2zpUAr4
LONDON, May 2 (Reuters) - The dollar nursed overnight gains while Europe's share markets struggled early on, after the U.S. central bank dampened bets that it might be readying its first interest rate cut in years.
Oil and metals markets added to the pressure on stocks on Thursday with traders sending copper to a 2-month low and using news of record U.S. oil production to cash in some of Brent crude's near 33 percent rise this year.
Europe's basic resource stocks led the downward shift in equities with a 1.4 percent drop to their lowest since late March. Continental Europe was also trying to get back up to speed having been shut for holidays on Wednesday.
There was the Feds signals too. For all the intense political pressure to ease policy and the mixed growth/inflation data, the U.S. central bank held the line on Wednesday and refused to signal anything other than it was still on pause.
The dollar index drifted around 97.600 against its set of major currency peers after going as high as 97.728 and hovering around $1.1211 to the euro and $1.30 to Britain's pound with the Bank of England set to keep its rates on hold later.
Although the Fed made the predicted 5 basis point cut to the interest it pays on banks excess reserves a technical move to ease money market tightness as it runs down its balance sheet - chairman Jerome Powell was unwavering on the rate outlook and said the recent relapse in inflation rates was likely temporary.
"The market has gotten perhaps ahead of itself in quite confidently pricing in (U.S) interest rate cuts," said Michael Metcalfe, head of global macro strategy at State Street Global Markets.
"Powell was quite dismissive of the latest downturn in inflation... which I think has caused the market to reassess that a little bit."
Core European government bond yields also shuffled higher, tracking the rise in U.S. Treasuries after the Fed's message.
Asia trading had been thinned by holidays in Japan and China but Hong Kong and Korea's stocks gained after CNBC reported the U.S. and China could announce a long-awaited trade deal by May 10, as Chinese Vice Premier Liu He heads to Washington.
Though now expected by markets if confirmed, it would remove significant uncertainty that has weighed on markets and global data for a year now.
"I would still expect some relief rally once the deal gets done. The question is how big that move might be," State Street GM's Metcalfe added.
Elsewhere Turkey's lira remained under pressure near the 6 per dollar mark <TRY+> after data there had showed manufacturing activity contracting for the 13th month in a row. Euro zone factory activity also contracted for a third straight month.
"Demand shortages were again evident in the Turkish manufacturing sector in April, while currency weakness led to inflationary pressures building again," said Andrew Harker, associate director of IHS Markit.
In commodities markets, the drop in oil prices came after U.S. crude production output set a new record, though the losses were capped by the intensifying crisis in Venezuela and the stopping of Iranian oil sanction waivers by Washington.
U.S. crude was last off 27 cents at $63.32 a barrel while Brent slipped 33 cents to $71.86. Copper was at a two month low after a heavy tumble on Wednesday, while spot gold was marginally weaker at $1,271.55 an ounce.
(Additional reporting by Vidya Ranganathan Editing by Sam Holmes and Jon Boyle)