(New throughout, updates prices, markets activity, comment)
* Dow Jones Industrial Average down 0.1%; S&P 500 up 0.3%
* U.S. dollar rises after Fed statement
* Fed vows to keep benchmark interest rate near zero
* U.S. Treasury yields rise
By Matt Scuffham
NEW YORK, Dec 16 (Reuters) - Global stock indexes were mixed
on Wednesday as hopes over U.S. coronavirus relief and Brexit
deals were offset by increasing concerns over the economic
impact of the COVID-19 pandemic.
Weaker-than-expected retail sales data in the United States,
however, added to growing signs of a slowdown in that economy's
recovery from the pandemic recession, shining light on the need
for a deal on coronavirus relief. U.S. congressional negotiators were "closing in on" a $900
billion COVID-19 aid bill that will include a new round of
stimulus checks and extended unemployment benefits, lawmakers
and congressional aides said. "Everyone knows that something needs to be done before the
holiday," said Edward Moya, senior market analyst at OANDA in
New York. "The weaker retail sales report gave a strong
indication that sentiment among U.S. consumers is waning."
The Dow Jones Industrial Average .DJIA fell 16.47 points,
or 0.05%, to 30,182.84, the S&P 500 .SPX gained 9.65 points,
or 0.26%, to 3,704.27 and the Nasdaq Composite .IXIC added
64.22 points, or 0.51%, to 12,659.28.
Sebastien Galy, macro strategist at Nordea Asset Management,
said the prospect of a stimulus deal "is rightfully welcomed by
the markets, but the size of the fiscal package is the issue."
The Federal Reserve repeated a pledge to keep its benchmark
interest rate near zero until an economic recovery is complete.
The U.S. central bank also promised to keep funneling cash into
financial markets further into the future to fight the
recession. "It's a positive statement," said Quincy Krosby, chief
market strategist at Prudential Financial. "They've married a
positive projection for next year with the intention to keep an
accommodative and ultra-dovish stance until they are certain the
economic recovery has taken hold."
The dollar rose after the Fed statement, having earlier
fallen to its lowest level since April 2018.
The dollar index .DXY , which tracks the greenback versus a
basket of six currencies, rose 0.144 point, or 0.16 percent, to
90.617. U.S. Treasury yields also rose after the Fed
announcement with the 30-year yield up 1.8 basis points to
1.681%.
In Europe, markets were cheered by the possibility of a
Brexit trade deal, better-than-expected euro zone PMI economic
data and a European Central Bank decision to let euro zone banks
start paying dividends again if they have enough capital.
European stocks .STOXX rose 0.8%, earlier touching
nine-month highs, with the UK's FTSE 100 index .FTSE jumping
0.9%.
The MSCI world equity index .MIWD00000PUS , which tracks
shares in 45 nations, rose 2.36 points or 0.37%, to 636.25.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS rose 6.87 points, or 1.07%.
SHOT IN THE ARM
Progress on rolling out vaccines continued, after Moderna
Inc's MRNA.O COVID-19 vaccine appeared set for regulatory
authorization this week.
The United States also expanded its rollout of the newly
approved vaccine developed by Pfizer Inc PFE.N and BioNTech SE
BNTX.O .
Positive soundings from the European Union on Brexit talks
helped lift the British pound GBP= on Wednesday above $1.35
and to its highest level against the dollar since May 2018.
Britain and the European Union have moved closer to sealing
a new trade deal, but it was still unclear if they would
succeed, the bloc's chief executive said. The euro rose above $1.22 EUR= for the first time since
April 2018, and German government bond yields DE10YT=RR , which
tend to rise on positive news on the economic outlook, hit a
one-week high after data showed better-than-expected business
activity in the bloc this month. GVD/EUR
A long-overdue U.S. Treasury report on the foreign exchange
practices of U.S. trading partners could label several
countries, including Switzerland, as currency manipulators or
add them to a watchlist. The news helped Bitcoin smash through $20,000 for the first
time.
In commodities, spot gold prices XAU= rose $0.95, or
0.05%, to $1,854.41 an ounce. U.S. gold futures GCv1 settled up
0.2% at $1,859.10.
Brent crude LCOc1 was last up $0.32, or up 0.63%, at
$51.08 a barrel. U.S. crude CLc1 was last up $0.20, or up
0.42%, at $47.82 per barrel.