World equities traded close to 2009 highs on Thursday despite losses on emerging markets and investor fervor being cooled by weaker U.S. private employment and services sector data.
European shares boosted the overall picture, rising after steep previous session losses and ahead of interest rate decisions from the European Central Bank and Bank of England.
The dollar fell after a recently rare burst of strength on Wednesday.
MSCI's all-country world stock index <.MIWD00000PUS> was flat, having hit a new 2009 high in the previous session.
Its emerging market counterpart <.MSCIEF> lost 0.8 percent. Emerging markets have been shaken somewhat by a failed government debt sale in Latvia and fears that it will be forced to devaluate its currency.
The FTSEurofirst 300 <.FTEU3> gained 0.8 percent after falling more than 2 percent in the previous session. Japan's Nikkei <.N225> lost 0.75 percent.
The market will remain shaky. After a decent performance for three months in a row, people are getting tempted to take some profits, said Franz Wenzel, strategist at AXA Investment Managers, in Paris.
The European Central Bank is set to keep interest rates on hold on Thursday with markets keen to see the details of its covered bond purchase plan as well as any signal on whether rates may yet be cut further.
The Bank of England is also expected to keep interest rates at a record low 0.5 percent and refrain from expanding its quantitative easing plan.
The dollar weakened against a basket of currencies <.DXY> after a big reversal from 2009 lows after the weaker-than-expected U.S. data that took the wind out of a risk rally in other major currencies.
The greenback has come under pressure in the past few weeks partly because the market is nervous about the ability of Washington to finance its growing debt issuance.
The dollar rebounded more than 1 percent from 2009 lows against the currency basket on Wednesday.
On Thursday, the euro was up 0.5 percent at $1.422, off its 2009 high of $1.4339.
The dollar gained 0.4 percent to 96.32 yen.
On euro zone government bond markets, the 10-year Bund yield was up 3 basis points at 3.569 percent and the two year <.EU2YT=RR> was at 1.445 percent.
(Editing by Mike Peacock)