LONDON/SYDNEY (Reuters) – Global shares hovered below record highs on Tuesday, while anticipation of earlier tapering by the Federal Reserve kept investors cautious which drove the U.S. dollar to a four-month high versus the euro.
Markets were looking ahead to U.S. inflation numbers on Wednesday for further indications of when the world’s largest economy may start to withdraw stimulus after taper talk was amped up by strong jobs data.
MSCI’s All Country World Index, which tracks shares across 49 countries, was 0.1% up on the day, below record highs scaled last week.
European shares pushed to fresh record highs, with the STOXX 600 0.2% stronger, extending gains to a seventh straight session, boosted by travel and leisure companies.
MSCI’s broadest index of Asia-Pacific shares outside Japan was 0.4% higher after trading much of the day in the red as worries weighed about the spread of the Delta variant of COVID-19.
China on Monday reported more COVID-19 infections in what seems to be its most severe resurgence of the disease since mid-2020, as some cities added rounds of mass testing in a bid to stamp out infections.
