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GLOBAL MARKETS-Stocks hit record on economic recovery, vaccine optimism

Published 16/11/2020, 16:44
GLOBAL MARKETS-Stocks hit record on economic recovery, vaccine optimism
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(Updates to open of U.S. markets, changes dateline; previous
LONDON)
* 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 hit a
record on Monday as the latest batch of positive data for a
possible COVID-19 vaccine boosted sentiment, along with signs of
economic recovery in Asia, while oil prices jumped.
U.S. stocks climbed, with the Dow Industrials nearing 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 MSCI World Index of global shares, building on strong
overnight gains in Asia's leading markets and a stronger open
for most European bourses, managed to extend gains after the
Moderna announcement to hit a record.
"The global population couldn't have asked for more from the
Moderna vaccine," said Seema Shah, chief strategist at Principal
Global Investors in London.
"Today's vaccine news should make investors more tolerant of
the surging virus cases, permitting them to look through to the
strong dynamics that seem to be taking shape for 2021."
The Dow Jones Industrial Average .DJI rose 401.05 points,
or 1.36%, to 29,880.86, the S&P 500 .SPX gained 35.09 points,
or 0.98%, to 3,620.24 and the Nasdaq Composite .IXIC added
82.14 points, or 0.69%, to 11,911.43.
Shares in Europe also gained on the Moderna news, with the
STOXX 600 touching its highest in over 8 months. The pan-European STOXX 600 index .STOXX rose 1.38% and
MSCI's gauge of stocks across the globe .MIWD00000PUS gained
1.18%.
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 climb.
U.S. crude CLc1 was up 3.91% at $41.70 per barrel and
Brent LCOc1 was at $44.43, up 3.86% 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 3/32 in price to yield 0.9029%, from
0.893% late on Friday. the dollar edged higher against a basket of major
currencies following last week's modest gains, sterling slipped
versus the greenback as the clock was running down on Brexit
trade talks, European Union diplomats warned Britain.
The dollar index =USD rose 0.012%, with the euro EUR= up
0.03% to $1.1835.
Sterling GBP= was last trading at $1.3184, down 0.02% on
the day.


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