GLOBAL MARKETS-Dollar stays low as stocks cheer latest record streak

From Reuters - October 13, 2017

LONDON (Reuters) - World stocks rose for a fourth straight day on Friday on expectations of broad-based global growth, while the dollar headed for its worst week in five as investors awaited U.S. inflation data.

MSCIs world equity index, which tracks shares in 47 countries, was up 0.1 percent after hitting record highs on Thursday.

Earlier in Asia, MSCIs broadest index of Asia-Pacific shares outside Japan hit a 10-year high, up 0.3 percent on the day.

European shares rose to their highest level in nearly four months, helped by some well-received earnings updates. The pan-European STOXX600 rose 0.3 percent and was set for its fifth straight week of gains as were world stocks.

Germanys DAX index was flat, just below the fresh all-time high hit in the previous session, while Britains FTSE eased back 0.4 percent after a record close on Thursday.

(Markets) have certainly been kind to us this year and valuations are increasingly a point of contention, said Fergus Shaw, a partner at Cerno Capital.

But if we look bottom-up, we see broad based, modest growth supporting corporates generally.

Emerging market stocks were buoyant too as another 0.2 percent rise set their latest 6-year peak.

In currencies, the dollar stayed on the defensive after minutes from the last U.S. Federal Reserve meeting showed policymakers remained divided on U.S. inflation prospects.

The index which measures the greenback against a basket of six major currencies was 0.1 percent lower ahead of consumer price inflation data, due at 1230 GMT.

The data will likely be disrupted by the hurricanes. Butif inflation is picking up, that is still positive for the dollar, said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui Asset Management.



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