(Adds U.S. market open, byline, dateline; previous LONDON)
* Wall St seesaws before release of FOMC minutes
* Oil retreats after OPEC reports output at 8-year highs
* Dollar gains ahead of Fed minutes release
By Herbert Lash
NEW YORK, Oct 12 (Reuters) - Global equity markets traded slightly lower and the dollar edged higher ahead of the release of Federal Reserve minutes on Wednesday that should provide a clearer picture on when policymakers will raise U.S. interest rates.
Oil prices fell more than 1 percent after the Organization of the Petroleum Exporting Countries reported its September output at eight-year highs, offsetting optimism over the group’s pledge to bring a global crude glut under control.
Sterling rebounded slightly from a brutal selloff since last week as British Prime Minister Theresa May’s offer to give UK lawmakers some scrutiny of the process behind plans to leave the European Union calmed fears of a “hard Brexit” involving a clean break from the single market.
U.S. equity markets seesawed before the release of minutes of the Federal Open Market Committee’s latest meeting at 2 p.m., while European markets and an index of global equity performance traded lower.
“It’s a battle in the market between faster growth and higher rates. Markets are ‘OK’ with rates rising as long as they can see the growth starting to boost the top line,” said Brad McMillan, chief investment officer at Commonwealth Financial in Waltham, Massachusetts.
“It’s only when you see slower growth combined with higher rates that the market is really going to react,” he said.
The Dow Jones industrial average rose 20.34 points, or 0.11 percent, to 18,149. The S&P 500 gained 3.07 points, or 0.14 percent, to 2,139.8 and the Nasdaq Composite added 2.57 points, or 0.05 percent, to 5,249.36.
In Europe, the FTSEurofirst 300 index of leading regional companies fell 0.37 percent to 1,337.16. MSCI’s all-country world equity index fell 0.39 percent.
The dollar index, which measures the greenback against a basket of six major trading currencies, hit a seven-month high at 98.018 ahead of the FOMC minutes.
Analysts said rising expectations that the U.S. central bank will hike interested rates in December were boosting the dollar.
“We suspect that the market will be more alert to the hawkish voices in the minutes,” said Vassili Serebriakov, FX strategist at Credit Agricole in New York.
The euro hit an 11-week low of $1.1005 in early U.S. trading, and was last down 0.43 percent at $1.1006. The dollar was last up 0.85 percent against the yen at 104.38 yen.
U.S. Treasury yields rose to their highest levels in four months, with prices pressured by two auctions and growing expectations of a Fed rate hike this year.
Yields on shorter-dated maturities, such as 2-year notes, which are more sensitive to Fed policy expectations, rose to their highest since early June ahead of the Fed minutes. Two-year notes fell 1/32 in price to yield 0.8826 percent.
The benchmark 10-year Treasury note were last down 9/32 in price to yield 1.7921 percent, with yields earlier rising above 1.80 percent for the first time since June 3.
Brent crude fell 61 cents to $51.80 a barrel, while U.S. West Texas Intermediate crude slipped by 70 cents to $50.09 a barrel.
Reporting by Herbert Lash, additional reporting by Sam Forgione and Dion Rabouin in New York; Editing by Meredith Mazzilli