World stocks held steady below this week's eight-month peak today while the dollar fell broadly as concerns about growth in China and the euro zone and a renewed focus on sovereign debt problems in Italy and Spain kept investors cautious.
Italy was expected to come under scrutiny this morning after the release of sales data, with investors already eyeing a planned bond sales next week as a possible flashpoint. Growth is an essential component of plans in the peripheral euro zone countries to reduce high debt levels.
The MSCI world equity index was largely steady on the day, having hit its highest level in nearly 8 months earlier this week. The rally has stalled on the back of weak factory activity data in China and the euro zone, which has somewhat undermined faith in the pace of a global upturn.
"After impressive gains over the last months, the recent losses are not more than a drop in a bucket. Hence investors have enough reason to remain calm," said Roger Peeters, a market strategist at Close Brothers Seydler Bank.
European stocks were steady to slightly higher on the day, while emerging stocks fell 0.2 per cent.
Brent oil was up 0.3 per cent at $123.54 a barrel. Bund futures were down 10 ticks.
The dollar fell 0.3 per cent against a basket of major currencies. The yen fell 0.4 per cent to 82.85, slowly inching back towards this year's low of 84.19 hit earlier in March.
Reuters
