* 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. 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. 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. 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. 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 (NYSE:TGT) TGT.N jumped 12% after posting its best quarterly comparable sales growth and online revenue that nearly tripled. 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. 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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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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