GLOBAL MARKETS-Asian shares ease from record high; oil falls on virus case surge

(Adds European futures, updates levels throughout)
* Trump preparing sanctions on some Chinese officials
* Market still pinning hopes on U.S. COVID-19 stimulus
* JP Morgan sees strongest global GDP rebound in two decades
* Sterling weaker ahead of looming Brexit deadline
* Asian stock markets : https://tmsnrt.rs/2zpUAr4

By Swati Pandey
SYDNEY, Dec 7 (Reuters) - Asian shares retreated from a
record peak on Monday after a Reuters report the United States
was preparing to impose sanctions on some Chinese officials
highlighted geopolitical tensions, while oil prices fell on
surging virus cases.
In a signal markets elsewhere would start weaker, eurostoxx
50 futures STXEc1 were 0.4% down, futures for Germany's DAX
FDXc1 eased 0.3% while those of London's FTSE FFIc1 were
flat. E-Mini futures for the S&P 500 ESc1 slipped 0.2%.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS fell 0.1% following four straight sessions of
gains. The index hit a record high of 644.3 points early on
Monday.
It is up about 16% so far this year, the best since a 33%
jump in 2017.
China's blue-chip index .CSI300 dropped 0.8%, largely
ignoring strong export data, while Hong Kong's Hang Seng .HSI
was down 1.7%. Japan's Nikkei .N225 declined 0.46% while Australian
shares .AXJO were up 0.6%.
The sell-off began after Reuters exclusively reported,
citing sources, that the United States was preparing sanctions
on at least a dozen Chinese officials over their alleged role in
Beijing's disqualification of elected opposition legislators in
Hong Kong. The move comes as President Donald Trump's administration
keeps up pressure on Beijing in his final weeks in office.
"One thing that the market has been concerned about is that
on his (way) out of office Trump would look for some retribution
on China. So this news speaks to that fear," said Kyle Rodda,
market strategist at IG Markets in Melbourne.
"At the end of the day, the market knows he only has six
weeks left. The broader focus is still on vaccine roll-outs and
U.S. fiscal stimulus."
Asian markets had initially started higher on hopes of a
faster global recovery as coronavirus vaccines get rolled out,
starting this week in Britain.
U.S. authorities will also this week discuss the programme
before the expected first round of vaccinations this month.
Hopes the vaccines will help curb the pandemic, which has so
far killed more than 1.5 million people globally, sent shares
soaring in recent weeks.
On Wall Street, stock indexes reached fresh all-time highs
on Friday with the Dow .DJI rising 0.8%, the S&P 500 .SPX
gaining 0.9% and the Nasdaq .IXIC adding 0.7%. .N
"The vaccine will break the link between mobility and
infection rate, allowing for the strongest global GDP growth in
more than two decades," JPMorgan analysts wrote in a note,
forecasting global growth of 4.7% in 2021.
Still, expectations of a U.S. stimulus aid package gathered
pace after weak payrolls data last week, following months of
deadlocked negotiations.
The U.S. economy added the fewest workers in six months in
November, with nonfarm payrolls increasing by 245,000 jobs last
month, much lower than expectations for a 469,000 increase.
A bipartisan group of Democrats and Republicans proposed a
compromise $0.9 trillion package that leaders on both sides
appear open to agreeing to. In currencies, investor focus is on a last-ditch attempt by
Britain and the European Union to strike a post-Brexit trade
deal this week, with probably just days left for negotiators to
avert a chaotic parting of ways at the end of the year.
If there is no deal, a five-year Brexit divorce will end
messily just as Britain and its former EU partners grapple with
the severe economic cost of the COVID-19 pandemic.
The pound GBP= was a shade weaker at $1.3419 while the
single currency EUR= was up 0.1% at $1.2133, not too far from
an April 2018 high of $1.2177.
The risk sensitive Australian dollar AUD=D3 was up 0.1% at
$0.7433.
That left the U.S. dollar down 0.1% at 90.702 against a
basket of major currencies, after hitting a 2-1/2-year low last
week. USD=
In commodities, oil prices slipped from their highest levels
since March as a continued surge in coronavirus cases globally
forced a series of renewed lockdowns, including strict new
measures in Southern California. O/R
U.S. crude CLc1 was off 24 cents at $46.02 per barrel and
Brent LCOc1 was down 26 cents at $48.99. Brent has lost about
a quarter of its value so far this year.
Spot gold XAU= , which hit a record high of $2,072.49 an
ounce, was last at $1,838.9, still up a hefty 21% this year.

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(Editing by Lincoln Feast and Jacqueline Wong)