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The
MSCI All-Country World equity index edged higher by 0.1 percent,
with trading volumes relatively light ahead of public holidays
that will close London and New York markets on Monday.
The pan-European FTSEurofirst 300 index of leading European
shares was steady but remained around a one-month high reached
earlier this week, while U.S. futures made slight gains.
"Markets are doing remarkably well given that a U.S. interest
rate rise might happen as early as next month," said Lex Van
Dam, hedge fund manager at Hampstead Capital.
The dollar index rose 0.1 percent and was on track for its best
monthly performance since last November, after a string of U.S
Federal Reserve officials indicated that rates could rise as
soon as June given signs of strength in the world's biggest
economy.
Investors will looking for further clues on the likely timing of
a rate hike when Federal Reserve Chair Janet Yellen speaks later
in the day.
"I'm not sure if U.S. interest rates will go up in June, but
July is quite likely," said Clairinvest fund manager Ion-Marc
Valahu, who added that he had recently canceled some earlier
"short" positions that bet on the dollar losing ground.
A stronger dollar often lifts European stocks as weakness in the
euro <EUR=> makes European companies' exports cheaper.
Some traders said stock markets were unlikely to make much
headway in the coming month, however, given uncertainties like
Britain's June 23 vote on its membership of the European Union.
"With the headwinds of a possible interest rate hike from the
Federal Reserve, and the EU referendum in June, there might not
be a huge amount of new money coming into the market," said
Manoj Ladwa, head of trading at TJM Partners.
(Additional reporting by Anirban Nag and Alistair Smout in
London, and Shinichi Saoshiro in Tokyo; Editing by Catherine
Evans)
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