* MSCI World index hits record
* U.S. stocks hold near unchanged mark
* Dollar lower for fifth straight session
(Updates with close of European markets)
By Chuck Mikolajczak
NEW YORK, Nov 18 (Reuters) - A gauge of global shares hit a
record for a third straight day while the dollar moved off
earlier lows on Wednesday as further positive COVID-19 vaccine
news helped temper concerns about rising infection rates and
related economic damage.
On Wall Street, Pfizer PFE.N shares gained 1.50% after the
drugmaker said its COVID-19 vaccine was 95% effective and the
company would apply for emergency U.S. authorization within
days. Pfizer's announcement came on the heels of a similar report
from Moderna's on the effectiveness of its vaccine. While the three major averages held near the unchanged mark,
Boeing climbed 0.47% after the U.S. Federal Aviation
Administration ended the flight ban on the planemaker's 737 MAX
jet.
Still, with many major equity indexes at or near record
levels, analysts caution additional stimulus measures are needed
to buttress the economy until a vaccine can be widely
distributed.
"What we are dealing from a virus standpoint is front and
center, it is right in our faces, and the vaccine brings a level
of optimism that is no doubt positive from a humanity standpoint
as well as the markets," said Keith Buchanan, senior portfolio
manager at Globalt in Atlanta.
"But where we go from here to when those vaccinations can
actually hit the ground and be considered widespread is causing
some concern."
A report on U.S. homebuilding showed the housing market
continues to be a bright spot even as other parts of the economy
are showing signs of strain from rising coronavirus cases.
Dow Jones Industrial Average .DJI fell 8.4 points, or
0.03%, to 29,774.95, the S&P 500 .SPX lost 0.98 points, or
0.03%, to 3,608.55 and the Nasdaq Composite .IXIC added 17.16
points, or 0.14%, to 11,916.50.
After a sluggish start, European shares closed higher as
vaccine optimism and a round of takeover deals helped offset
concerns over fresh lockdown measures to slow the spread of the
virus in the region. The pan-European STOXX 600 index .STOXX rose 0.44% and
MSCI's gauge of stocks across the globe .MIWD00000PUS gained
0.18%, touching an intraday record for a third consecutive
session.
While the U.S. dollar moved off its earlier lows following
the housing data, the greenback was still on pace for its fifth
straight decline as the Pfizer news gave investors an appetite
for some risk taking. The dollar index =USD fell 0.153%, with the euro EUR= up
0.03% to $1.1865.
The weaker dollar also helped lift the pound, along with
hopes Britain will be able to secure a post-Brexit trade deal
with the European Union before its departure from the EU's
customs union and single market in January. Sterling GBP= was
last trading at $1.3287, up 0.35% on the day. Benchmark 10-year notes US10YT=RR last fell 4/32 in price
to yield 0.8832%, from 0.872% late on Tuesday.
The increased risk appetite on the vaccine news also helped
oil prices advance, along with hopes OPEC and its allies will
delay a planned increase in oil output.
U.S. crude CLc1 rose 1.59% to $42.09 per barrel and Brent
LCOc1 was at $44.61, up 1.97% on the day.
Safe haven gold XAU= , meanwhile, dropped 0.3% to $1,872.86
an ounce.
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COVID-19 https://tmsnrt.rs/3lKwe14
COVID-19 Global Tracker COVID-19 Global Tracker https://tmsnrt.rs/2FkV6wq
U.S. retail sales https://tmsnrt.rs/2Uz7jkY
Housing starts https://tmsnrt.rs/35Hs98j
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