World stocks ease off 11 month-high

Rising inflation expectations in Europe underlined the headwinds facing the global economy as it struggles to recover, while there is also caution about the immediate future of the six-month rally in global stocks. Emerging market stocks, however, rose further beyond pre-Lehman demise levels and Japan’s index closed up nearly 2 per cent.

European shares turned negative in mid-morning, undermining what had been a bullish day for riskier assets. The reverse came after the world index hit a new 2009 high, matching levels of October 2008. 

Investors have become increasing willing to take on riskier assets like stocks and emerging currencies in their portfolios over the past six months as signs of economic recovery or at least a slowdown in decline have boosted investor sentiment globally.

Reuters

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