(Updates With close of European markets)
* Moderna 's positive COVID-19 data boosts stocks
* Oil jumps on hopes for demand resumption
* Sterling dips against dollar on Brexit talks
By Chuck Mikolajczak
NEW YORK, Nov 16 (Reuters) - A gauge of global stocks
climbed to a record and oil prices jumped on Monday as the
latest positive data for a possible 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, thanks
to news from pharma company Moderna MRNA.O saying its
prospective vaccine was 94.5% effective in preventing the
illness which has crushed economies across the globe.
Cyclical 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
sectors the top performing.
The announcement by Moderna followed similarly upbeat news a
week ago from rival Pfizer PFE.N .
"The endgame is as clear as it has been while the path to
get there may be murkier than we expected," said Ross Mayfield,
investment strategy analyst at Baird.
"You can see the continued broadening out of the rally and
in the rotation into some of the more cyclical and
value-oriented parts of the market."
Mayfield cautioned that there were still some near-term
headwinds facing the market, including uncertainty over a
possible fiscal stimulus package to buttress the economy before
any vaccine could begin to be distributed.
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 a record.
The Dow Jones Industrial Average .DJI rose 296.07 points,
or 1%, to 29,775.88, the S&P 500 .SPX gained 19.6 points, or
0.55%, to 3,604.75 and the Nasdaq Composite .IXIC added 23.46
points, or 0.2%, to 11,852.75.
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
0.91%.
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 rose 2.72% to $41.22 per barrel and Brent
LCOc1 was at $43.82, up 2.43% on the day. [
U.S. 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 2/32 in price to yield 0.8979%, 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. Sterling was little changed versus the greenback as the
clock was running down on Brexit trade talks, European Union
diplomats warned Britain. The dollar index =USD fell 0.013%, with the euro EUR= up
0.07% to $1.184.
Sterling GBP= was last trading at $1.3187, up 0.01% on the
day.
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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
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