* World stocks weak after central bank meetings
* Wall Street points to modest gains at start
* BoE statement, limited QE rise, lifts sterling
* Euro flat
By Jeremy Gaunt, European Investment Correspondent
LONDON, Nov 5 (Reuters) - World stocks were weaker on
Thursday following the Federal Reserve's decision to keep
interest rates near zero for "an extended period" and signals
from others that the global economy is not yet out of the woods.
Wall Street looked set for tentative gains at the start.
The European Central Bank and Bank of England both kept
rates steady, as expected, but the latter increased its
programme of asset purchases by 25 billion pounds.
That was at the bottom end of what analysts had been
forecasting -- though in line with a Reuters' consensus -- and
it pushed sterling higher and bonds lower in the UK and the euro
zone.
The dollar was flat against a basket of major currencies,
however, unable to keep up early gains that came after the
previous session's post-Fed sell off.
Investors were also bracing for Friday's monthly U.S. jobs
report, which often prompts volatility on financial markets.
<ECONUS>[]
"Investors were pushing the market lower, preparing for more
selling by investors such as hedge funds in case U.S. jobs data
raises a disturbance," said Tsuyoshi Segawa, an equity
strategist at Mizuho Securities.
Adecco, the world's largest staffing company, said a
tentative pickup in demand for temporary workers and signs that
companies are making fewer layoffs have boosted its confidence
in the economic recovery. []
MSCI's all-country world stock index <.MIWD00000PUS> was
down 0.1 percent, well off its lows. The pan-European
FTSEurofirst <> slid 0.3 percent and Japan's Nikkei
<> closed down 1.3 percent.
The Fed's closely watched policy statement late on Wednesday
was somewhat more upbeat than its statement in September.
However, it was also more explicit about why it expects to
keep rates low for some time yet, citing "low rates of resource
utilization, subdued inflation trends, and stable inflation
expectations", none of which point to a buoyant economy.
That took the edge off a Wall Street rally and the mood
carried over into Asia and Europe, where investors were also
jittery about the ECB and BoE.
DOLLAR GAINS
The dollar lost strength after the BoE and ECB
announcements.
The dollar index <.DXY>, which tracks the dollar against a
basket of currencies, was flat as was the euro at $1.4869
<EUR=>.
Sterling jumped more than a full U.S. cent to $1.6620 after
the BoE decision, hitting its highest in two weeks as well as a
day high of 89.33 pence against the euro.
Euro zone government futures hit a session low, taking a cue
from the sell-off in UK government debt.
Two-thirds of analysts had predicted the bank would expand
its asset-buying scheme, but opinion had been split on whether
the increase would be 25 billion or 50 billion pounds.
(Additional reporting by Jessica Mortimer; Editing by Ruth
Pitchford)
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