World shares traded at their highs for the week on Thursday and the euro rose on signs policymakers in Europe were taking urgent action to help stem Spain's banking crisis and that the United States might embark on monetary stimulus.
The positive mood helped lift demand at the latest auction of Spanish debt, extended the week's gains in the FTSE Eurofirst 300 .FTEU3 index of top European shares to over 2.5 percent, and kept Brent crude oil trading just above $100 a barrel.
The improved appetite for riskier assets has been linked to signs from the U.S. Federal Reserve that it could be ready to take action to tackle slowing growth, and reports German and EU officials are closer to a plan to deal with Europe's crisis.
"Since (last week's) weak U.S. job data, there's been rising speculation of more stimulus from the Fed," said Katsunori Kitakura, associate general manager of the market-making unit at Sumitomo Mitsui Trust Bank.
The case for action by the Fed was laid out by the central bank's second most senior official, Janet Yellen, in a speech on Wednesday that highlighted the risks to the economic recovery from ongoing housing problems, a weak job market and worsening financial conditions.
In the wake of her comments the MSCI's world equity index .MIWD00000PUS has risen about 0.5 percent, extending its gains to nearly 3 percent this week and putting it on track for its best weekly performance since late January.
The euro rose to $1.2586, its highest since May 28, and up marginally on the day, and about 2.3 percent above a two-year low of $1.2288 hit last week.
Read more: http://www.reuters.com/article/2012/06/07/us-markets-global-idUSBRE8520GN20120607
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