* Global stocks slip after 5-day run up
* Europe slightly lower, Japan down 0.8 pct, China 2.6 pct
* Wall Street set for modest rise, dollar flat to weaker
* Little impact from Bernanke reappointment
By Jeremy Gaunt, European Investment Correspondent
LONDON, Aug 25 (Reuters) - World stocks fell back after five
days of gains on Tuesday and the dollar firmed as investors
waited for fresh clues on whether the global economic recovery
was truly picking up steam.
Wall Street looked set for a modest start, however.
Emerging markets led declines. China's volatile Shanghai
Composite Index <> fell 2.6 percent but investors were not
likely to be overly concerned given its 7.5 percent rise over
the three prior sessions.
Globally, the MSCI all-country world stock index
<.MIWD00000PUS> was down 0.2 percent. The index hit a year high
on Monday, however, and is up more than 20 percent for the
year-to-date.
Emerging market shares <.MSCIEF> lost 0.5 percent but they
are up more than 50 percent in 2009.
"We continue to believe that we are emerging from the
recession and are entering a period of positive, but sub par,
growth levels," Bob Doll, BlackRock's chief investment officer
for global equities, said in his weekly note.
European shares fell back from 10-month closing highs. The
FTSEurofirst 300 <> index of top European shares was down
0.2 percent
Earlier, Japan's Nikkei 225 <> closed 0.8 percent
lower.
News that U.S. President Barak Obama was to reappoint
Federal Reserve Chairman Ben Bernanke for a second term had
little impact on markets. []
"It should be positive for markets such as the stock and
bond markets in the sense that an element of uncertainty has
been removed," said Takahide Nagasaki, chief FX strategist at
Daiwa Securities SMBC.
RISK OFF
The yen rose, gaining in particular against the euro and
sterling as the retreat in European shares curbed demand for
currencies considered to be high-risk.
Trading was thin as many market participants were away on
summer holidays and analysts said currency movements were
largely being dictated by other asset markets, making them
vulnerable to a pullback in stocks and commodities.
"Some capital markets still look a bit overpriced relative
to the hard economic data, so some of the correction we've seen
in the pro-cyclicals is to be expected," said Phyllis Papadavid,
currency strategist at Societe Generale in London.
Euro zone government bond prices were higher to flat.
Two-year bond yields <EU2YT=RR> were unchanged at 1.314 percent
and 10-year yields <EU10YT=RR> slipped 3 basis points to 3.282
percent.
(Additional reporting by Charlotte Cooper and Naomi Tajitsu,
editing by Mike Peacock)
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