Global shares edged lower on Tuesday, as new coronavirus outbreaks in Asia vied with strong U.S. and European consumer confidence, and investors speculated about whether the Federal Reserve would accelerate its timetable to end easy monetary policy.
The U.S. dollar rose to a one-week peak on safe-haven buying stoked by fears that the highly contagious Delta variant could derail a burgeoning economic recovery.
MSCI's all country world index, which tracks shares across 50 countries, shed 0.06%, as declines in Asian equities undercut new highs in U.S and European markets.
The Nasdaq closed at a record high, boosted by technology stocks and a government survey showing U.S. consumer confidence in June hit its highest level since the pandemic started.
European shares ended higher after data there showed economic sentiment hit a 21-year high in June. The pan-European STOXX 600 index closed 0.3% higher at 456.37 points.
Still, MSCI's broadest index of Asia-Pacific shares outside Japan closed 0.55% lower, Japan's Nikkei lost 0.81%, and Chinese stocks lost 0.92%.
Investors are worried about the economic impact of the highly infectious Delta variant. Indonesia, Malaysia, Thailand and Australia are all battling outbreaks and tightening restrictions, and Spain and Portugal announced restrictions for unvaccinated British tourists.