LONDON/HONG KONG (Reuters) - World stocks fell from the previous session’s record highs and European stocks dropped on Wednesday on caution over the pace of economic recovery, while the dollar hit one-week highs as investors reduced exposure to riskier assets.
Accommodative central bank policies and optimism about reopening economies have pushed world stocks to record highs, but concerns are growing about the impact of rising coronavirus infections due to the Delta variant.
Markets are also still assessing data from last week which showed the U.S. economy created the fewest jobs in seven months in August.
The Fed should move forward with a plan to taper its massive asset purchase program despite the slowdown in job growth, St Louis Federal Reserve Bank President James Bullard said in an interview with the Financial Times on Wednesday.