GLOBAL MARKETS-Shares hover near record high as year draws to close

(Updates prices throughout, adds details)

* MSCI world index flat, set for best year since 2009

* European shares and Wall Street futures reach record highs

* China stocks under pressure as tech shares retreat

* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh

By Danilo Masoni and Swati Pandey

MILAN, Dec 23 (Reuters) - World stocks hovered near record

highs and currency markets were little changed on Monday as

trading dwindled before the Christmas holiday and investors

looked with confidence towards the new year.

The pan-European STOXX 600 .STOXX index was up 0.09% by

1211 GMT after reaching a record high. MSCI's broadest index of

Asia-Pacific shares outside Japan .MIAPJ0000PUS ended near its

highest since June 2018.

The MSCI all-country stock index .MIWD00000PUS remained

just below Friday's record high, trading flat. It has risen

nearly 3% this month as U.S.-China trade tensions eased and

confidence grew that Britain would avoid a chaotic exit from the

European Union. The index is up 23% so far in 2019, set for its

best year since 2009.

U.S. President Donald Trump said on Saturday the United

States and China would "very shortly" sign phase one of a trade

agreement. It calls for the United States to reduce

some tariffs in exchange for China's buying more American farm

products.

China said on Monday it would lower tariffs on products

ranging from frozen pork and avocado to some types of

semiconductors next year. "Indeed things appear to look brighter for 2020 than they

did a year ago. There should be much more certainty what a trade

deal between the US and China is concerned. Furthermore although

Brexit will finally become reality in 2020 ... there is hope

that this will be accomplished and that Europe's growth will

accelerate," said City of London Markets trader Markus Huber.

"No doubt some good news is already priced in, but markets

are once more being flooded with liquidity/cheap money which

should propel them higher," he said.

On Wall Street, S&P 500 ESc1 , Dow Jones 1YMc1 and Nasdaq

NQc1 futures all touched record highs before the open.

On Friday, the U.S. benchmark S&P 500 .SPX extended its

record highs to seven straight sessions, its longest streak in

more than two years. All three major U.S. indexes - the S&P 500,

Nasdaq and Dow - gained.

Data on Friday showed U.S. growth rose in the third quarter

and the economy was probably maintained its expansion as the

year ended. Consumer spending was stronger than previously

reported, and there were upgrades to business spending.

During Asian hours on Monday, Japan's Nikkei .N225 ended

little changed after reaching a 14-month top last week. It was

up 2.3% for the month so far.

Chinese stocks posted their worst single-day drop in six

weeks, weighed down by a correction in tech shares after a state

fund announced plans to cut its stakes in some chip makers.

Several stock markets will remain closed at least one day

this week for Christmas and economic data is also thin. The only

major report this week is the U.S. personal consumption

expenditure deflator for November.

In currency markets, the euro EUR= was up 0.01% at $1.1080

on the day after slipping 0.4% last week.

Sterling GBP= , down 0.17% at $1.3027, reversed earlier

gains and fell back to fresh three week lows. It suffered its

worst week in three years last week after Prime Minister Boris

Johnson ruled out extending a transition period for Britain to

negotiate a trade deal with the EU beyond the end of 2020.

The safe-haven Japanese yen was down 0.05% at 109.39. JPY=

The dollar index .DXY was up 0.01% at 97.703 against six

major currencies, holding near two-week highs following Friday's

decent U.S. economic data. FRX

In commodities, oil held near recent three-month highs on

hopes for a China-U.S. trade deal, although prices initially

fell after Russia said an OPEC-led agreement may consider easing

output cuts next year. O/R

Brent crude LCOc1 was down 9 cents to $66.23 a barrel.

West Texas Intermediate crude CLc1 slipped 1 cent to $60.43 a

barrel.

Spot gold XAU= was up 0.36% at $1,483.10 an ounce.

World stocks https://tmsnrt.rs/2EKyuBl

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