* World stocks, dollar slightly higher
* European shares flat
By Jeremy Gaunt, European Investment Correspondent
LONDON, Aug 5 (Reuters) - World stocks eked out small gains
with European shares staying flat on Thursday as investors eyed
meetings of the European Central Bank and Bank of England later
in the session and Friday's U.S. jobs data loomed large.
The dollar was firmer against a basket of currencies after a
trend-breaking rally on Wednesday when U.S. data beat
expectations. An ADP report showed the U.S. adding jobs.
A second day of upbeat earnings from Europe's banking sector
saw Germany's Commerzbank <CBKG.DE> raise its outlook after a
forecast-beating second quarter. Barclays of the UK <BARC.L>
beat expectations with a 44 percent rise in half-year profit as
bad debts dropped, but it made a big accounting gain, offsetting
a second-quarter slowdown at its investment bank.
Investors were also looking ahead to U.S. non-farm payrolls
jobs data due on Friday against the backdrop of an apparent U.S.
economic hiccup considered a major threat to the global
recovery, even if China and some others can take up part of the
slack.
"Corporate earnings will keep helping the market for some
more time, but if macroeconomic numbers are going to take over,
then good earnings will not be enough to support the market,"
said Koen De Leus, economist at KBC Securities.
"Nervousness is now about the U.S. jobs data as expectations
of the markets are really linked to these numbers. If they are
better than expected, then concerns of a double dip will fade
very fast. If that's not happening, then we might see a
correction."
MSCI's all-country world stock index <.MIWD00000PUS> and the
the Thomson Reuters global stock index <.TRXFLDGLPU> gained
about 0.2 percent.
The FTSEurofirst 300 <> was flat.
Earlier, Japan's Nikkei <> closed up 1.7 percent,
helped at least for a while by top carmaker Toyota Motor Corp
<7203.T> reporting its best operating profit in two years,
beating market estimates, and lifting its cautious forecasts
despite a sluggish U.S. recovery.
DOLLAR FIRMS
The European Central Bank and the Bank of England are both
expected to leave interest rates on hold at record lows of 1.0
percent and 0.5 percent respectively. [] []
Analysts said ECB president Jean-Claude Trichet may be
upbeat in a subsequent news conference, given recent successful
bank stress tests and a run of solid European bank earnings.
But Friday's U.S. jobs report was the main factor.
"Today will be all about squaring of short dollar positions
ahead of Friday's payrolls numbers as no one will want to be
short of dollars if there is a positive outcome," said Niels
Christensen, currency strategist at Nordea.
The dollar index <.DXY> rose 0.1 percent to 80.977, off its
recent low of 80.469, its weakest since mid-April, while the
euro <EUR=> fell 0.3 percent to $1.3123.
Euro zone government bonds were little changed ahead of the
ECB meeting.
(Additional reporting by Jessica Mortimer and Atul Prakash;
Editing by John Stonestreet)
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