GLOBAL MARKETS-Vaccine hopes drive stocks higher on 'Black Monday' anniversary

* European stocks rise 0.8%, Asia slightly higher
* Pfizer could have coronavirus vaccine ready by end-2020
* Pelosi optimistic on U.S. fiscal aid before Nov elections
* Currencies tread water, oil slips, gold gains

By Thyagaraju Adinarayan
LONDON, Oct 19 (Reuters) - European stocks rallied on Monday
as rising hopes of a coronavirus vaccine by the end of the year
and a U.S. fiscal package before elections offset concern over
record daily infections in the region.
Wall Street futures rose 0.9% on the 33rd anniversary of the
1987 "Black Monday" crash, when the Dow Jones Industrial Average
.DJI lost 22.6% in one day, equivalent to a drop of about
6,500 points in the index today.
European blue-chip stocks index .STOXX50 rose 0.8% even as
new COVID-19 cases were growing at over 150,000 a day in Europe.
Parts of the UK were put into lockdown and France imposed
curfews.
Those worries and no breakthrough in the Brexit stalemate
failed to curb risk appetite among investors, after U.S. House
Speaker Nancy Pelosi said on Sunday she was optimistic about a
coronavirus relief deal before Election Day.
Boosting overall sentiment, drugmaker Pfizer Inc PFE.N
said on Friday it could have a coronavirus vaccine ready in the
United States by the end of this year. "A vaccine will be broadly available from the second quarter
of next year, with markets moving to price in the economic
benefits well ahead of that," said Mark Haefele, chief
investment officer at UBS Global Wealth Management.
"The on-off fiscal talks have injected near-term volatility
into risk assets, but instead of staying on sidelines, we
suggest investors consider ways to build up long-term positions
in these market conditions."
Investors also took comfort from China's economic recovery
in the third quarter as consumers shook off their coronavirus
caution, although the weaker-than-expected headline growth
capped stock market gains in Asia.
"The rebound in Q3 GDP was less strong than expected, but
was still a decent 4.9% year on year. September data beat
expectations, suggesting a pick-up in momentum towards the
latter part of Q3," said Frances Cheung, head of macro strategy
for Asia at Westpac in Singapore.
"The pick-up in momentum was broad-based, which bodes well
for the Q4 outlook."
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS rose 0.5% for a second straight day of gains,
paring back following third-quarter gross domestic product data
from China.
Separate monthly indicators pointed to an expansion in
economic activity. Industrial output accelerated 6.9% in
September from a year earlier, when analysts were looking for a
5.8% gain from a 5.6% rise in August.
Later in the week, key risk events, include minutes of
Australia's central bank meeting, the final U.S. presidential
debate and global manufacturing indicators.
Action in currencies was muted with the U.S. dollar =USD
flat at 93.696 against a basket of six major currencies. USD/
The euro EUR= traded higher at $1.1725 and the sterling
held above a 10-day low on Monday. Investors cut their holdings
as British and European negotiators tried to salvage post-Brexit
trade talks. "EU-UK trade talks are flirting with collapse," ANZ
economists said.
"UK Prime Minister Johnson said the UK needs to prepare for
a no-deal outcome, as both sides cannot agree on a Canada-style
FTA. Talks resume in London on Monday, but without the political
willingness to shift ground, there is little the negotiators can
achieve."
In commodities, Brent crude futures LCOc1 were flat at
$42.92 a barrel and U.S. West Texas Intermediate crude futures
CLC1 traded at $40.91 a barrel.
Spot gold XAU= rose 0.6% to $1,909.6 an ounce.