Stocks wobble on inflation concerns ahead of U.S. payrolls

Stocks wobble on inflation concerns ahead of U.S. payrolls

LONDON- World stocks stepped back from record highs on Thursday as investors weighed inflation concerns ahead of key U.S. economic data, while oil prices rose for a third straight session. Market sentiment was cagey as investors backed away from big bets before the release on Friday of U.S. jobs data, which should offer further clarity on whether the faster-than-expected pace of economic recovery can be sustained and what that might mean for monetary policy. In Europe, the broad Euro STOXX index was 0.6% down, drifting away from record highs scaled on Tuesday, with Britain's FTSE 100 slipping 1%, while Germany's DAX and the French CAC 40 were both down 0.6%. A surge in euro zone business activity did little to improve sentiment. IHS Markit's final composite Purchasing Managers' Index (PMI) jumped to 57.1 last month from April's 53.8, its highest level since February 2018. There was a similar pullback in Asia, with MSCI's broadest index of Asia-Pacific shares outside Japan shedding 0.1% after reaching three-month highs on Wednesday. In Japan, the Nikkei share average rose 0.4%, while Australian shares climbed to all-time highs as investors cheered stronger-than-expected economic growth data released on Wednesday. The MSCI world equity index, which tracks