London — World stocks touched record highs on Friday, as trading wound down before the year-end holidays, while the pound was heading towards its worst week for more than two years amid renewed worries over how Britain will leave the EU.

MSCI's world equity index, which tracks shares in 49 countries, gained a smidgen to 561.31, bettering a record scaled on Thursday as optimism infused markets after the US and China agreed an initial trade deal...

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