Shares near record highs before ECB, payrolls double-header

World shares were hovering around record highs on Thursday as markets prepared for a European Central Bank and US jobs data double-header. Investors were subdued before the two events, both usually big market movers. Stocks, benchmark bonds and the euro and dollar all barely budged after an equally cautious day in Asia. The ECB is expected to flesh out last month's aggressive easing plans, and forecasts are for non-farm payrolls to rise by more than 200,000 for a fifth straight month. That would bolster the view the world's largest economy is back on track after a difficult winter. European stocks .FTEU3 inched up 0.3 percent, heading for their third consecutive day of gains and keeping MSCI's All World index .MIWD00000PUS, which covers 45 countries, flush with Wednesday's latest record high. The dollar was also up, copper on the London Metal Exchange CMCU3 hit its highest level since late February, and safe-haven gold was down amid a lull in tensions in Iraq and Ukraine. [GOL/] ‘People were saying, 'What is cheap in the world?' They figured out the (growth-sensitive) metals were cheap and if things accelerated a little bit, why not take a position?’ said analyst Dominic Schnider of UBS Wealth Management in Singapore. [MET/L]
DOLLAR, TREASURIES NUDGE HIGHER
The ECB was not the only central bank in action on Thursday. Sweden's crown fell to a 3-1/2-year low against the euro as its central bank cut rates more than expected. The Australian dollar lost ground after the head of the RBA warned the currency may weaken. The dollar held firm above a recent eight-week low as benchmark 10-year U.S. treasury yields crept to a new 1 1/2-week high of 2.62 percent. The euro was also hovering just below a six-week high at $1.3648 as German Bund yields nosed higher. The euro's strength is becoming a major thorn in the ECB's side, creating problems for both inflation and growth. Early futures prices ESc1 also pointed to minor gains on Wall Street later. The US jobs data is being released on Thursday because US markets are closed for Independence Day on Friday, the day the report is usually released. It is due at 12.30 GMT. The ECB will release its rate decision at 11.45 GMT; a press conference by Draghi is scheduled for 12.30 GMT. Asian equity markets had also seen little activity overnight, with MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS ending steady after briefly touching a new three-year peak.
OIL SLIPS
In commodities, crude oil extended losses after falling the previous day on encouraging signs of supply from Libya and Iraq. [O/R] Libya's acting prime minister Abdullah al-Thinni said the government had reached a deal with a rebel leader controlling oil ports to hand over a final two terminals that should end a blockade. Iraqi Prime Minister Nuri al-Maliki also boosted supply hopes as he said parliament could form a new government in its next session after the first collapsed in discord. Baghdad can ill afford a long delay as large swathes of the north and west fall under the control of an al Qaeda splinter group Brent crude LCOc1 was back below $110.50 for the first time in over two-weeks while safe-haven gold XAU= fell 0.3 percent to $1,323.55 an ounce as it pulled back from a 3-month high, according to Reuters.