* Global stocks hit record highs
* European stocks at nine-month highs
* Sterling stares down endgame for Brexit talks
* Portuguese bond yields return to positive territory
*
By Carolyn Cohn
LONDON, Dec 9 (Reuters) - Global stocks reached record highs
on Wednesday as investors focused on efforts to provide more
fiscal stimulus and positive news on COVID-19 vaccines, while
sterling inched up as British and European leaders meet for
talks on a Brexit trade deal.
U.S. lawmakers continued to negotiate over additional
stimulus to help offset the economic impact of the pandemic
while pursuing a stopgap government-funding bill.
Leaders in both parties remain adamant a deal must be struck
but are still working through sticking points, including aid to
state and local governments and business liability protections.
The steady march of positive news on COVID-19 vaccines also
helped lift investor spirits.
Britain on Tuesday became the first Western nation to begin
a wide vaccination campaign, and Johnson & Johnson JNJ.N
reported it could obtain late-stage trial results for a
single-dose vaccine in January, earlier than expected.
Meanwhile, Pfizer Inc PFE.N cleared another hurdle when
the U.S. health regulator released documents flagging no new
safety or efficacy concerns. "Momentum will be a little bit less than it has been. T here
are certain questions to be answered about the logistics of the
vaccines, and vaccines don't change the winter picture for the
virus, but we are expecting positive returns for next year ...
there's a lot going for the global economy," said Seema Shah,
chief global strategist at Principal Global Investors.
MSCI's gauge of stocks across the globe .MIWD00000PUS rose
to a record 635.65, up 0.3%. The index has been on a roll for
weeks, gaining 15% since the beginning of last month.
European stocks reached nine-month highs as they opened up
0.65%. German DAX futures FDXc1 gained 1% and Britain's FTSE
100 .FTSE , which has been hardest hit of the main global
indexes this year, added 0.8%.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS rose 0.6% overnight, touching a record high,
U.S. futures ESc1 pointed to Wall Street adding to its record
high. .N
DINNER TALKS
The euro was down 0.2% against the British pound EURGBP=
and the pound was up 0.45% versus the dollar GBP= before
make-or-break talks on a trade deal between Britain and the
European Union.
British Prime Minister Boris Johnson is awaited in Brussels
for talks over dinner with European Commission President Ursula
von der Leyen in what is considered a last-ditch attempt to
avoid a no-trade-deal Brexit in three weeks' time. German Chancellor Angela Merkel said there was still a
chance of a deal. Euro zone bond yields - which move inversely to price -
edged down before Thursday's European Central Bank meeting, at
which further monetary stimulus has been signalled. GVD/EUR
Portugal's 10-year bond yield, which fell this week to a
record low of -0.01%, squeaked into positive territory, at
0.004%. PT10YT=RR
"That caps off a remarkable journey from the height of the
sovereign debt crisis, when in early 2012 (the yield) was
trading above 18% intraday," Deutsche Bank analysts said in a
note. Spain's 10-year yields could be next to go sub-zero, they
said.
Against a basket of currencies =USD , the safe-haven dollar
sat at 90.755, just above a two-and-a-half-year low it hit last
week on risk-on trades.
Highlighting the dollar's weakness, the offshore Chinese
yuan CNH=D3 strengthened past 6.5000 to reach its strongest in
more than two years. The onshore yuan CNY=CFXS also traded
near its highest in more than two years.
Australian shares .AXJO gained 0.6%. Japan's Nikkei
.N225 rose 1.3% to approach a 29 1/2-year high. Sentiment got
an added boost after Japanese data pointed to a rebound in
capital expenditure. South Korean stocks .KS11 also jumped by 1.6% to trade
near a record high after falling on Tuesday. Shares in China
.CSI300 bucked the trend and fell 0.7% on profit taking.
Oil prices rallied as the positive vaccine news lifted
investor hopes for a recovery in fuel demand.
Brent crude futures LCOc1 rose 55 cents to $49.39 a
barrel. U.S. West Texas Intermediate futures CLc1 gained 49
cents to $46.17. O/R
Spot gold XAU= fell 0.5% to $1,862.35 per ounce as the
start of vaccine treatment reduced safe-haven demand for the
precious metal.
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Global assets http://tmsnrt.rs/2jvdmXl
Global currencies vs. dollar http://tmsnrt.rs/2egbfVh
Emerging markets http://tmsnrt.rs/2ihRugV
MSCI All Country Wolrd Index Market Cap http://tmsnrt.rs/2EmTD6j
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