Last checked at 
* Euro STOXX 600 flat as mining gains offset energy losses
* MSCI ex-Japan reverse early losses, Chinese shares turn
positive
* U.S. dollar stays firm
* Gold near $1,900
* Graphic: Global asset performance http://tmsnrt.rs/2yaDPgn
* Graphic: World FX rates http://tmsnrt.rs/2egbfVh
By Tom Wilson and Swati Pandey
LONDON/SYDNEY, May 27 (Reuters) - World stocks were pinned
down on Thursday as investors awaited U.S. data expected to
offer clues on inflation, with further pressures widely seen as
sparking a scaling back of central banks' giant stimulus
packages.
The Euro STOXX 600 lost 0.2%, with German shares
down 0.5% and London's main index making slim
losses. France gained 0.1%.
Losses of around 0.2% in energy stocks were offset
by 1.2% gains in the mining sector, while British bank
HSBC gained 0.1% after a move to exit U.S. retail
banking to focus on Asia.
Wall Street futures gauges pointed to losses of around 0.2%
.
In focus was U.S. gross domestic product and jobless claims
numbers expected later in the day. Investors also held back
major bets before the monthly U.S. personal consumption report,
due on Friday.
"We still believe inflation will not be transient, but will
persist - this is where I think we differ with central banks,"
said Jeremy Gatto, a portfolio manager at Unigestion.
For many investors, rising inflation means the U.S. Federal
Reserve will slowly but surely edge towards a discussion about
tightening monetary policy.
The prospect lent support to the dollar, which has been
heavily shorted of late.
The MSCI world equity index, which tracks
shares in 49 countries, was flat.
Earlier, MSCI's broadest index of Asia-Pacific shares
outside Japan clawed back losses to trade flat
at 695.37, not too far from Wednesday's high of 696.76, a level
last seen on May 10.
TAPER TALK?
Global equities markets have been supported by a concerted
effort from major central banks, which have pumped trillions of
dollars into financial markets since last year while reiterating
their lower-for-longer interest rate stance.
U.S. Federal Reserve Vice Chair Richard Clarida said this
week recent inflation pressures would "prove to be largely
transitory", though he did add that policymakers will be at a
point to begin discussing tapering in upcoming meetings.
The Fed Vice Chair for supervision, Randal Quarles,
suggested that at some stage it will become important for the
U.S. central bank to discuss plans to tighten its asset purchase
programme.
With tapering on the agenda, the U.S. dollar index
held on to Wednesday's gains and was steady at 89.992.
"Whether (central banks) are going to do something early in
the very small way - just to indicate they are starting and do
it very gradually - or do something bigger next year, they're
the two really big scenarios for most investors," said Shaniel
Ramjee, senior investment manager at Pictet Asset Management.
The Chinese yuan hit a three-year high as China's central
bank kept to the sidelines.
The euro edged up to $1.22030, after losing ground a
day earlier after the European Central Bank's Executive Board
Director Fabio Panetta said it was too early to taper its
emergency bond buying programme.
The New Zealand dollar was among the best
performing currencies overnight after hints of a 2022 rate hike
by the Reserve Bank of New Zealand. On Thursday, it retreated
from a three-month top of $0.7317 and was last as $0.7294.
In commodities, gold prices hovered near $1,900 per
ounce, after hitting its highest since Jan. 8 at $1,912.50.
(Reporting by Tom Wilson in London and Swati Pandey in Sydney;
Editing by Lincoln Feast, Shri Navaratnam & Giles Elgood)
