Stocks set for first week of gains in three, euro climbs

European Stock Markets

World stocks hovered below record highs on Friday, set to reverse two straight weeks of losses while the euro hit its highest levels in six weeks following stronger than expected economic data this week. 

The MSCI World Index, which tracks shares in 47 countries, was up 0.1 percent, set for a 1 percent gain this week. Its climb was underpinned by modest gains in Europe and Asia. 

Emerging stocks .MSCIEF were up 0.2 percent and the pan-European STOXX 600 was up 0.1 percent. .STOXX50

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.

MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS was up 0.2 percent, as Hong Kong shares .HSI bucked the softness in mainland Chinese shares to gain 0.6 percent.
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 .N225 ended up 0.1 percent after a market holiday on Thursday while U.S. stock futures ESc1 were little changed after shortened trading on Thursday.

In the currency market, the U.S. dollar remained under pressure after the minutes from the U.S. 

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 percent lower. .DXY

The euro EUR= 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.[GBP/]