2018.02.2308:07:00UTC+00Dollar Climbs as Global Stocks Remain Muted

A stronger dollar and slightly higher global borrowing costs kept world shares subdued on Friday.

Europe's main London, Frankfurt and Paris markets barely budged in early moves, keeping MSCI's 47- country world index just in the black on the day but facing its third week in negative territory in the last four.

Modest gains for the dollar meant the euro was set to post its second biggest weekly loss in nearly four months, as caution over the Italian election gave bond markets there their toughest week of 2018.

U.S. yields are climbing by more than 50 basis points since early December, more than the 38 basis points for German government debt.

Benchmark Treasury 10-year note yields rose to a four-year high of 2.957 percent on Wednesday though they were a shade down at 2.904 percent on Friday.

The backsliding also stalled the dollar's overnight gains in Asia. It was virtually treading water against most major currencies, buying 106.8 yen and at $1.2325 and $1.3965 against the euro and pound.

It was still up more than 1 percent for the week and headed for its third gain in the last four weeks.

MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.9 percent on Friday to add to the previous week's 3.9 percent gain.