European shares extend losses as markets brace for Fed

European shares hovered near three-week lows on Wednesday while the dollar found some support as investors braced for a U.S. Federal Reserve report which may shed light on when it will trim its stimulus policy, Reuters reported. Emerging market currencies remained under pressure from expectations that the minutes from the Fed's last policy meeting in July, due out later, will signal an early end to the supply of cheap dollars they have relied on. European shares had edged down 0.2 in early deals after a 0.8 percent fall in the previous session, following on from a weaker session in Asia where MSCI's index of Asia-Pacific shares outside Japan eased 0.3 percent. The euro had eased 0.2 percent against the dollar to $1.3390 , having touched a six-month high of $1.3452 on Tuesday. Traders have cited European investors repatriating funds from emerging markets as one reason the single currency euro had spiked. Commodities markets were generally softer as the Fed loomed large. Copper futures dipped 0.4 percent to $7,292.75 a tonne, while spot gold inched down to $1,366.80, and away from a two-month high set on Monday.