(fxcue news) - European stocks are likely to open on a firm note Wednesday amid signs of easing Middle East tensions and growing expectations of a Fed rate cut in September. The United States is pushing for a "decisive moment" for ceasefire negotiations between Israel and Hamas, but a breakthrough appears elusive. All eyes remain on the release of minutes of the July 30-31 Fed meeting later in the day that may provide greater clarity on the Fed's rate trajectory. Remarks by Fed Chair Jerome Powell and other Fed officials at the Jackson Hole Economic Symposium later in the week may also offer additional clues about the likelihood of a rate cut next month. According to CME Group's FedWatch Tool, there is a 73.5 percent of a quarter point rate cut next month and a 26.5 percent chance of a half point rate cut. Asian markets cut early losses, tracking gains in U.S. stock futures. The dollar remains under broad-based selling pressure, hitting its lowest level this year versus the euro after 30-year Treasury yields fell to a two-week low. Gold traded close to a record high set on Tuesday while oil extended recent losses as industry data showed an inventory build in the U.S. U.S. stocks ended modestly lower overnight after notching their longest rally this year on easing concerns about a potential recession. Yields on government debt fell broadly after a survey of non-manufacturing activity from the Philadelphia Fed continued to reflect weakness in August. The tech-heavy Nasdaq Composite shed 0.3 percent and the S&P 500 slipped 0.2 percent to snap eight-day winning streaks while the Dow eased 0.2 percent. European stocks broke a five-day winning streak on Tuesday as a drop in energy stocks outweighed investor optimism over rate cuts in the U.S. The pan European STOXX 600 fell half a percent. The German DAX dipped 0.4 percent, France's CAC 40 slid 0.2 percent and the U.K.'s FTSE 100 lost 1 percent.