NEW YORK, Oct 18: Global stock markets climbed to a five-year high on Friday as investors bet the Federal Reserve would extend its stimulus policy into 2014, but uncertainty when US interest rates would eventually rise caused the dollar to sink to an eight-month low.

MSCI’s index that tracks the performance of 45 countries rose 0.59 percent to highs last seen in May 2008, while a European index, the Stoxx Europe 600 gained for a seventh successive day, its longest winning streak this year.

The Dow Jones industrial average was down 24.98 points, or 0.16pc, at 15,346.67. The Standard & Poor’s 500 Index was up 5.49 points, or 0.32pc, at 1,738.64.

The Nasdaq Composite Index was up 29.37 points, or 0.76pc, at 3,892.52.

The Stoxx Europe 600 index extended its rally to seven days, rising 0.76pc, while the broader FTSEurofirst 300 of leading European shares rose 0.65pc to close at a provisional 1,276.29, a new five-year high.

Traders sold the dollar against a basket of currencies, pushing the dollar index down 0.06pc at 79.601 on expectations the Fed may delay scaling back its stimulus.

The euro rose to 0.08pc to $1.3686.

Brent crude futures rose toward $110 a barrel, supported by a weak US dollar and growth data from China.

Brent crude was up 34 cents at $109.45 a barrel, while US crude oil was up 14 cents at $100.81.—Reuters