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(Adds U.S. market open, byline; previous dateline LONDON)
* Global shares climb to fresh records on trade, growth
optimism
* European shares set for best year since financial crisis
* China's industrial profits grow at fastest in 8 months
By Herbert Lash
NEW YORK, Dec 27 (Reuters) - Global equity markets scaled
fresh records in a year-end rally on Friday as upbeat Chinese
economic data and optimism a U.S.-Sino trade deal is imminent
bolstered global growth prospects, but the dollar weakened as
risk appetite increased.
Wall Street opened to new all-time highs and European shares
rose to a third day of record peaks this week as various equity
markets remained on course for their best year since at least
the global financial crisis a decade ago.
Profits at Chinese industrial firms grew at the fastest pace
in eight months in November, rising 5.4% from a year earlier to
593.9 billion yuan ($84.93 billion). The gains snapped three
months of decline, but broad weakness in domestic demand remains
a risk for corporate earnings in 2020. Sluggish demand and a profit-eroding trade dispute with the
United States has pressured Chinese industry over the past year,
though recent factory activity surveys have pointed to a nascent
recovery in the sector after accelerated government stimulus
measures to steady growth.
Germany's benchmark 10-year Bund yield held steady below
recent six-month highs while U.S. Treasury yields fell as the
government debt found support following a sell-off that sent
yields to one-month highs.
Yields have risen amid increased risk appetite driven by
optimism that a Phase 1 U.S.-Sino trade pact will spur global
growth and as major central banks around the world inject
liquidity into the market.
The U.S. dollar slipped across the board as increased
investor appetite for risk sapped the safe-haven appeal of the
greenback.
MSCI's gauge of stock performance in 49 countries
.MIWD00000PUS gained 0.35% while the pan-European STOXX 600
index .STOXX rose 0.17%, both setting all-time highs.
Equity markets are poised to rise further in 2020, even as
high valuations pose a concern, said Rahul Shah, chief executive
of Ideal Asset Management in New York.
"Considering the dynamics of the market right now we think
that equity investors should be positioning for further bullish
momentum in 2020," Shah said.
"Valuations have been ticking up a little bit, but there
have been many times in market history where valuations stay
above average for a while," he said.
On Wall Street, the Dow Jones Industrial Average .DJI rose
70.6 points, or 0.25%, to 28,691.99. The S&P 500 .SPX gained
4.49 points, or 0.14%, to 3,244.4 and the Nasdaq Composite
.IXIC added 4.37 points, or 0.05%, to 9,026.76.
The S&P 500 was just shy of surpassing annual gains of 29.6%
in 2013, which would provide the U.S. benchmark its best year
since 1997.
Overnight in Asia, MSCI's broadest index of Asia-Pacific
shares outside Japan .MIAPJ0000PUS jumped 0.8% to 555.39, a
level not seen since mid-2018. It is up 15.5% so far this year.
Emerging market stocks rose 0.66%.
The euro rose to a 10-day high. The dollar index .DXY fell
0.54%, with the euro EUR= up 0.68% to $1.1172. The Japanese
yen JPY= strengthened 0.13% versus the greenback at 109.51 per
dollar.
U.S. gold futures GCcv1 climbed to a seven-week high of
$1,518.70 an ounce. Spot gold XAU= added 0.1%.
Oil prices edged down from three-month highs as investors'
optimism on economic growth was clouded by the Russian energy
minister's comments downplaying crude output cuts next year.
The Organization of the Petroleum Exporting Countries and
its allies including Russia, a group known as OPEC+, may
consider wrapping up their oil output reduction in 2020, Russian
Energy Minister Alexander Novak said. Brent crude LCOc1 slid 3 cents to $67.89 a barrel, while
West Texas Intermediate CLc1 fell 3 cents to $61.65 a barrel.