GLOBAL MARKETS-Stocks scale new peaks, sterling awaits last supper on Brexit

* Global stocks hit record highs, U.S. futures pointing up
* European stocks at highest since Feb
* Portuguese bond yields return to positive territory
* Canada rate decision 1500 GMT, no change expected
*

By Carolyn Cohn
LONDON, Dec 9 (Reuters) - Global stocks reached record highs
on Wednesday as investors hailed efforts to provide more fiscal
stimulus and positive news on COVID-19 vaccines, and sterling
made gains 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. More good news on COVID-19 vaccines also lifted investor
spirits. Britain this week became the first Western nation to
begin a wide vaccination campaign, and Johnson & Johnson JNJ.N
said it could obtain late-stage trial results for a single-dose
vaccine in January, earlier than expected.
Pfizer Inc PFE.N also 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. There
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 0.23%. The index has been on a roll for
weeks, gaining 15% since the beginning of last month.
U.S. futures ESc1 rose 0.14%, pointing to Wall Street
adding to its record high. .N
European stocks .STOXX reached their highest since
February. The German DAX index .GDAX gained 0.9% and Britain's
FTSE 100 .FTSE , which has been hardest hit of the main global
indexes this year, added 0.36%.
However, Britain injected a note of caution into the vaccine
euphoria, saying people with a history of significant allergic
reactions responded adversely to the Pfizer vaccine.
TALKS
The euro was down 0.66% against the British pound EURGBP=
and the pound was up 0.78% versus the dollar GBP= before
make-or-break talks on a trade deal between Britain and the
European Union.
British Prime Minister Boris Johnson heads to Brussels on
Wednesday for a meeting over dinner with European Commission
President Ursula von der Leyen in a push to avoid a turbulent
breakup in three weeks. There was a glimmer of hope on Tuesday after Britain said it
would drop clauses in draft domestic legislation that breach the
already agreed Brexit divorce settlement, after reaching an
"agreement in principle" with the EU over how to manage the
Ireland-Northern Ireland border. Britain and the EU have agreed a trusted trader scheme on
the border, Ireland's state broadcaster RTE said on Wednesday.
The Canadian dollar CAD= approached the previous session's
two-and-a-half-year high against the U.S. currency before a rate
decision at 1500 GMT. The central bank is expected to keep rates
unchanged until the end of 2022 and will not ramp up its asset-
purchase programme anytime soon, according to a Reuters poll.

Euro zone bond yields - which move inversely to price -
edged down before Thursday's European Central Bank meeting,
where further monetary stimulus is expected. GVD/EUR
Portugal's 10-year bond yield, which fell this week to a
record low of -0.01%, was trading at zero. 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.
The U.S. dollar dipped to 90.82 against a basket of
currencies =USD , nearing a two-and-a-half-year low hit last
week in a move to riskier assets.
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.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS rose 0.6%, touching a record high.
Japan's Nikkei .N225 rose 1.3% to approach a 29 1/2-year
high. 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 15 cents to $48.99 a
barrel. U.S. West Texas Intermediate futures CLc1 gained 13
cents to $45.73. O/R
Spot gold XAU= fell 0.9% 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
Rebound of major world markets https://tmsnrt.rs/370lXbY
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