Global shares lacklustre as rate cut hopes ebb

SYDNEY, Jan 3 (Reuters) – Global stock markets were lacklustre on Wednesday, while the dollar stayed strong, as market optimism about early U.S. interest rate cuts ebbed and the latest escalation of hostilities in the Middle East weighed on sentiment. MSCI’s broad index of world equities was 0.1% lower, following a 0.8% fall on Tuesday, marking a weak start to 2024 that may herald the end of the blistering gains for stocks and bonds that began late last year. Europe’s STOXX 600 share index opened flat and Asia Pacific shares outside Japan fell 1.3%. Caution crept in ahead of the release of minutes from the U.S. Federal Reserve’s December meeting, due at 1900 GMT on Wednesday. Fed officials in December…