World Stocks Retreat After Record Peak; Dollar Up

World stocks eased from the previous session's record highs while the dollar reached its highest in eight days on Thursday, after hawkish remarks from a senior US Federal Reserve official, Carolyn Cohn and Alun John reported for Reuters.

Photo Insert: The pandemic continues to create uncertainty in markets around the globe

Fed Vice Chair Richard Clarida, a major architect of the Fed's new policy strategy, said on Wednesday he felt the conditions for raising interest rates could be met by the end of 2022, raising expectations the central bank could scale back its bond-buying program soon.

The MSCI world shares index was steady at 729.68, versus a record peak of 731.88 hit in the previous session. US stock index futures - the S&P 500 e-minis - rose 0.17%. US stocks closed mostly lower on Wednesday after the Fed remarks, with the S&P 500 receding 0.46% from a record high after data signaled a slowdown in jobs growth in July.

European stocks hit record highs, however, and were up 0.21% on strong earnings from Danish company Novo Nordisk and German industrial firm Siemens. UK stocks were steady and the pound rose 0.18% against the dollar ahead of a Bank of England Policy meeting.

Markets are looking for clues on any possible future UK rate rises, particularly as two policymakers have broken ranks to say the time for tighter policy might be nearing.

"The exit strategy, we think, will highlight the Bank's focus on unwinding its bloated balance sheet more so than on hiking rates," Deutsche Bank analysts said in a note.

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