GLOBAL MARKETS-Stocks retreat as virus restrictions increase; sterling weakens

* S&P 500, Dow slip; Nasdaq climbs
* Brexit jitters send sterling down
* U.S. bond yields ease

(Updates with European stocks close)
By Caroline Valetkevitch
NEW YORK, Dec 7 (Reuters) - Stocks on global indexes eased
on Monday as worries escalated over the economy because of
increasing COVID-19 cases and restrictions, while sterling
slumped as Britain and the European Union made a last-ditch
attempt to strike a trade deal.
After surging to a fresh all-time high earlier on Monday,
the MSCI world equity index .MIWD00000PUS , which tracks shares
in 49 countries, was last down 0.2%. The U.S. benchmark S&P 500
was also lower in afternoon New York trading, retreating from
its recent record, while the Nasdaq gained as investors fled to
technology shares.
Authorities in California, the most populous state in the
United States, on Monday compelled much of the state to close
shop and stay at home the day after it reported a record
30,000-plus new coronavirus cases. "I think what you are seeing today is a focus on the short
term with the shutdown," said Christopher Grisanti, chief equity
strategist at MAI Capital Management in Ohio.
Investor eyes also continue to be on negotiations between
U.S. Republicans and Democrats for approval of further
coronavirus relief. Expectations of a U.S. stimulus aid package gathered pace
after weak payrolls data on Friday and following a bipartisan
proposal on a $908 million package last week that leaders on
both sides appeared open to agreeing to. The Dow Jones Industrial Average .DJI fell 199.56 points,
or 0.66%, to 30,018.7, the S&P 500 .SPX lost 14.07 points, or
0.38%, to 3,685.05 and the Nasdaq Composite .IXIC added 24.80
points, or 0.2%, to 12,489.03.
The pan-European STOXX 600 index .STOXX ended down 0.3%.
British and European Union negotiators were trying to bridge
stubborn differences standing in the way of a post-Brexit trade
deal, but they had at best 48 hours to avoid a disorderly
parting of ways at the end of this month. Sterling fell in a sentiment reversal from Friday when the
British currency rose to a 19-month high against the dollar.
Sterling GBP= was last trading at $1.33, down 0.68% on the
day.
Investors also await an EU summit starting on Thursday to
break an impasse over a 1.8 trillion-euro coronavirus aid
package, as well as the last European Central Bank policy
meeting of the year on the same day.
In the bond market, yields on most U.S. Treasuries fell as
rising coronavirus case loads drove investors to buy the
safe-haven securities. Benchmark 10-year notes US10YT=RR last rose 13/32 in price
to yield 0.93%, from 0.97% late on Friday.
Oil prices CLc1 LCOc1 were slightly lower, with traders
weighing the positive impact from an OPEC+ deal on production
against increasing coronavirus cases. Spot gold prices XAU=
gained.

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
World FX rates in 2020 http://tmsnrt.rs/2egbfVh
2020 asset performance http://tmsnrt.rs/2yaDPgn
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>