GLOBAL MARKETS-Wall Street reaches all-time high, Treasury yields soar on vaccine promise

* Wall Street, world stock markets touch record highs
* Pfizer says COVID-19 vaccine is 90% effective
* Crude, U.S. Treasury yields jump, gold slides
* Biden win boosts trade-sensitive currencies
* Graphic: 2020 asset performance http://tmsnrt.rs/2yaDPgn
* Graphic: World FX rates in 2020 http://tmsnrt.rs/2egbfVh

(Updates to afternoon)
By Stephen Culp
NEW YORK, Nov 9 (Reuters) - The S&P 500 and the Dow followed
world equity indexes to record levels and U.S. Treasury yields
surged on Monday, as promising developments toward a coronavirus
vaccine and the prospect of improved trade relations under
President-elect Joe Biden gave a jolt to investor risk appetite.
Value stocks boosted all three major U.S. stock indexes to
all-time highs and crude prices jumped more than 10%.
The indexes subsequently paired their gains, and the Nasdaq
was last flat.
Pfizer Inc PFE.N said its COVID-19 vaccine, developed with
German partner BioNTech SE BNTX.O , was more than 90% effective
in preventing infection, marking the first successful results
from a large-scale clinical trial. "Investors are truly optimistic and there's not a whole lot
of sellers out there," said Oliver Pursche, president of Bronson
Meadows Capital Management in Fairfield, Connecticut. "This
optimism is reflected in multiple asset classes - stocks,
Treasury yields, oil prices are up sharply, and gold prices are
down sharply.
"Last Friday we were talking about new shutdowns -
tightening restrictions on restaurants and bars - and this
represents a light at the end of the tunnel," Pursche added.
Global leaders welcomed the U.S. election results,
congratulating President-elect Joe Biden even as incumbent
Donald Trump refused to concede, vowing to challenge the result.
The CBOE Market Volatility index .VIX , a barometer of
investor anxiety, dropped to its lowest level since late August.
The Dow Jones Industrial Average .DJI rose 1,260.16
points, or 4.45%, to 29,583.56, the S&P 500 .SPX gained 93.09
points, or 2.65%, to 3,602.53 and the Nasdaq Composite .IXIC
dropped 1.21 points, or 0.01%, to 11,894.02.
Pfizer's announcement gave a jolt to European shares,
sending them to an eight-month high, building on expectations of
more stable trade policies in the wake of Biden's victory.
The pan-European STOXX 600 index .STOXX rose 3.98% and
MSCI's gauge of stocks across the globe .MIWD00000PUS gained
2.17%.
Emerging market stocks rose 1.37%. MSCI's broadest index of
Asia-Pacific shares outside Japan .MIAPJ0000PUS closed 0.96%
higher, while Japan's Nikkei .N225 rose 2.12%.
The vaccine news sent the benchmark 10-year U.S. Treasury
yield soaring to its highest level since March, and the yield
curve, an indication of risk appetite to its steepest since
March, on optimism the world's largest economy would emerge from
a pandemic-induced recession. Benchmark 10-year notes US10YT=RR last fell 41/32 in price
to yield 0.9594%, from 0.82% late on Friday.
The 30-year bond US30YT=RR last fell 109/32 in price to
yield 1.75%, from 1.598% late on Friday.
Oil prices surged and were on track for their biggest daily
percentage gain in more than six months as the vaccine news and
an OPEC output deal fueled optimism over rebounding demand.
U.S. crude CLcv1 rose 8.48% to settle at $40.29 per barrel
and Brent LCOcv1 was settled at $42.40, up 7.48% on the day.
The prospect of a Biden presidency buoyed trade-related
currencies on expectations of a thawing of the tariff war as the
dollar index rose from a 10-week low. The dollar index .DXY rose 0.59%, with the euro EUR=
down 0.35% to $1.1831.
The Japanese yen weakened 1.98% versus the greenback to
105.44 per dollar, while Sterling GBP= was last trading at
$1.3169, up 0.10% on the day.
Gold prices slumped as investors pivoted away from the
safe-haven metal in favor of riskier assets. Spot gold XAU= dropped 4.3% to $1,866.86 an ounce.