World Stocks Lose Momentum

Global equity markets were set to end the week on a softer footing on Friday, after setting record highs in the previous two sessions, as investors looked for clarity on US President Donald Trump’s policies on tax and trade. The MSCI All-Country World index was still headed for its fourth straight week of gains after hitting a record high on Thursday, buoyed by positive signs for global economic growth, but Asian and European markets eased as investors cashed in recent gains, Reuters reported. MSCI’s index of Asia-Pacific shares outside Japan pulled back 0.2%, Tokyo stocks closed down 0.6% and the pan-European STOXX 600 index was 0.5% lower, although it remained near its highest level in 13 months. European stocks have been boosted by positive earnings surprises. With more than half of the STOXX 600 companies having reported, 55% had beaten forecasts. Although the dollar was 0.3% firmer on the day, it was hovering near a one-week low against a basket of currencies and headed for its sixth week of losses in the last eight, as investors awaited substantive market-friendly news from Trump on tax reform.