Stocks touch 20-month high, bond yields drop after Fed cuts

LONDON (Reuters) - World stocks edged to their highest in over 20 months on Thursday after the Federal Reserve cut rates even as it signalled it would hold back from further reductions, sending bond yields and the dollar down. MSCI's world equity index , which tracks shares in 47 countries, rose 0.1% to its highest since early February last year, with many investors remaining expectant of further easing in spite of the Fed's slightly hawkish tone. The U.S. central bank on Wednesday cut rates..