MSCI AllWorld index flat after last week39;s slide
Dollar extends gains before U.S. CPI, retail data
A chorus line of Fed officials to speak this week

LONDONSYDNEY, Feb 13 Reuters Global shares steadied, while the dollar rose on Monday, ahead of U.S. inflation data that could define the outlook for global interest rates, while news that the U.S. air force had shot down another airborne object created some geopolitical uncertainty.

Officials declined to say whether this object, which was spotted along the Canadian border and is the fourth to be shot down this month, resembled the large white Chinese balloon that was shot down earlier in February.

Equities rallied over the first weeks of 2023, buoyed by enthusiasm over the prospect of a peak in inflation and rates as well as evidence of ongoing U.S. growth that has suggested the economy could be in for a soft landing.

But that optimism ran into a brick wall the week before last when the Federal Reserve reiterated its message that the war on inflation is not over, and after the January jobs report depicted a redhot labour market.

The MSCI AllWorld index, which gained almost 10 in the first five weeks of the year, fell by nearly 1.5 last week. It was last flat on the day at 646.59 points.

U.S. data on consumer prices and retail sales this week could prove a key catalyst for nearterm direction for the markets, with much resting on whether inflation continued to slow in January.

Median forecasts are for headline and…