The MSCI World Index, which tracks shares in 47 countries, was up 0.1 per cent, set for a 1 per cent gain this week. Its climb was underpinned by modest gains in Europe and Asia. Emerging stocks were up 0.2 per cent and the pan-European STOXX 600 was up 0.1 per cent.
Surveys on Thursday covering Europe’s services and manufacturing industries outshone the most optimistic forecasts in Reuters polls, with factories having the second-best month in the index’s history.
“It’s a bit of a Goldilocks situation (for economic growth). It is finely balanced and I think the European Central Bank has very much hinted at that in its actions, but at the moment I cant really see how this is going to be up-ended,” said Ken Odeluga, market analyst at City Index.
MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.2 per cent, as Hong Kong shares bucked the softness in mainland Chinese shares to gain 0.6 per cent.
Stocks in mainland China dropped to three-month lows after big falls the previous day on concerns about fresh government steps to curb financial risks and rise in Chinese bond yields.
Japan’s Nikkei ended up 0.1 per cent after a market holiday on Thursday, while US stock futures were little changed after shortened trading on Thursday.
In the currency market, the US dollar remained under pressure after the minutes from the US Federal Reserve’s latest policy meeting highlighted concern among some of the board members over persistently low inflation. The index that measures the greenback against a basket of peers was 0.2 per cent lower.
The euro hit its highest in nearly two months at $1.1875 and was on track to mark its third consecutive week of gains despite failure of coalition talks in Germany earlier this week.
The leader of country’s Social Democrats is coming under growing pressure to drop his opposition to a new “grand coalition” with Chancellor Angela Merkel’s conservatives, with senior politicians arguing the party had a duty to promote stability.
A weaker dollar saw the British pound staying near a six-week high against the dollar ahead of British Prime Minister Theresa May’s visit to Brussels later in the day for talk on Brexit.
