(Updates to close of U.S. markets, oil settlement prices)
* Moderna 's positive COVID-19 data boosts stocks
* Oil jumps on hopes for demand resumption
* U.S. dollar dips - Citi sees possible 20% weakening in
2021
By Chuck Mikolajczak
NEW YORK, Nov 16 (Reuters) - A gauge of global stocks hit a
record and oil prices jumped on Monday as the newest positive
data for a potential COVID-19 vaccine and signs of economic
recovery in Asia boosted sentiment.
U.S. stocks advanced, with the Dow Industrials setting a
record as it neared the 30,000 mark for the first time, after
pharma company Moderna MRNA.O said its prospective vaccine was
94.5% effective in preventing the illness, which has crushed
economies across the globe. Cyclical and small cap names, which generally benefit the
soonest as an economy recovers from a recession, led the way
higher, with energy .SPNY , industrial .SPLRCI and financial
.SPSY the top-performing sectors. The Russell 2000 index of
small cap stocks gained 2.37%.
"If you look at the move in energy, that is clearly a
beneficiary from less restrictive work from home, or forced to
not travel or do things," said Andrew Mies, chief investment
officer at 6 Meridien in Omaha.
The announcement by Moderna followed similarly upbeat news a
week ago from rival Pfizer PFE.N .
Analysts cautioned, however, that there were still some
near-term headwinds facing the market, including a continued
rise in coronavirus cases and uncertainty over a possible fiscal
stimulus package to support the economy before any vaccine could
be distributed.
"You are definitely going to see the economy have another
dip, another weak spot, and they are going to have to address
that with extended unemployment because a lot of people are out
of work and aren't going to see any income coming in," said
Mies.
The MSCI World Index of global shares, building on strong
overnight gains in Asia's leading markets managed to extend
gains after the Moderna announcement to hit an intraday record
of 613.89.
The Dow Jones Industrial Average .DJI rose 470.63 points,
or 1.6%, to 29,950.44, the S&P 500 .SPX gained 41.76 points,
or 1.16%, to 3,626.91 and the Nasdaq Composite .IXIC added
94.84 points, or 0.8%, to 11,924.13.
The Dow closed at a record high, following the S&P 500,
Nasdaq and Russell 2000 in setting fresh closing highs in recent
days.
Shares in Europe also gained on the Moderna news, with the
STOXX 600 closing at its highest level in over 8 months.
The pan-European STOXX 600 index .STOXX rose 1.18% and
MSCI's gauge of stocks across the globe .MIWD00000PUS gained
1.29%.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS had hit its highest level since launching in
1987 as Japan pulled out of recession, China posted
better-than-expected industrial output data and the region
signed the largest ever trade deal.
The prospect of an end to demand-demolishing
coronavirus-driven lockdowns also helped oil prices jump.
U.S. crude CLc1 settled up 3.02% at $41.34 per barrel and
Brent LCOc1 was at $43.82, up 2.43% on the day. [ Treasury yields rose on Monday and the yield curve
steepened in the wake of the vaccine data. Benchmark 10-year
notes US10YT=RR last fell 5/32 in price to yield 0.9094%, from
0.893% late on Friday. initially showing slight gains, the dollar edged lower
against a basket of major currencies. Citibank said it expects
the greenback to weaken as much as 20% next year due to the
widespread distribution of COVID-19 vaccines and ongoing
monetary easing. The dollar index =USD fell 0.058%, with the euro EUR= up
0.14% to $1.1849.
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Coronavirus cases Nov 16 https://tmsnrt.rs/32NOJdz
GRAPHIC-World FX rates http://tmsnrt.rs/2egbfVh
GRAPHIC-MSCI All Country World Index Market Cap http://tmsnrt.rs/2EmTD6j
GRAPHIC-Emerging markets http://tmsnrt.rs/2ihRugV
GRAPHIC-Global assets in 2020 http://tmsnrt.rs/2yaDPgn
Emergency benefits running out https://tmsnrt.rs/2Uxa9ab
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