* Outcome of talks on U.S. stimulus, Brexit trade deal loom
* All three major U.S. stock indexes hit record highs
* Dollar steadier after week-long beating
By Huw Jones
LONDON, Dec 18 (Reuters) - Wall Street headed for a muted
open on Friday after hitting record highs in the prior session
on hopes that Washington will finally agree on a COVID-19
stimulus package as Americans prepare to get vaccinated.
U.S. stock futures were little changed, with no major data
to give investors a steer as the last full week of trading in
2020 winds up.
Tech major Microsoft Corp MSFT.O eased pre-market after it
said it found malicious software in its systems related to a
massive hacking campaign disclosed by U.S. officials this week.
Shares in U.S. package delivery company FedEx FDX.N were
likely to come under pressure after it gave no earnings
forecast.
The dollar remains in poor shape after a week-long drubbing,
with U.S. stock futures ESc1 flat.
The U.S. Congress faced a deadline on Friday to agree to a
fresh round of COVID-19 aid in what is expected to be a $900
billion piece of legislation to take a pandemic that has killed
nearly 309,000 Americans.
"I does feel like we have a particularly light schedule in
terms of events with markets in the U.S. going to be focused on
the ongoing negotiations to see if we can get things over the
line," said Ned Rumpeltin, European head of currency strategy at
TD Securities.
Republican Senate Majority Leader Mitch McConnell said the
chamber would remain in session through the weekend if
necessary, but Rumpeltin said a deal on aid "feels fully priced
in" already.
"It could be a sell-the-fact reaction," Rumpeltin said,
though any downside for markets could be limited by the prospect
of a fresh round of aid in the New Year as the new U.S.
administration of President-elect Joe Biden takes office on Jan.
20.
Markets were also encouraged that the United States stood
ready to ship 5.9 million doses of a new coronavirus vaccine
developed by Moderna MRNA.O . U.S. President Donald Trump tweeted ahead of the U.S. open
that the vaccine has been "overwhelmingly approved" with
distribution to start immediately.
'ONLY HOURS LEFT'
European shares were providing little impetus, with bourses
barely changed on Friday as Britain and the European Union
remained bogged down over fishing rights in Brexit trade deal
talks.
Shares in London .FTSE , Frankfurt .GDAXI and Paris
.FCHI were barely higher.
But euro zone government bond yields extended early gains as
a stronger-than-expected German IFO institute business morale
index weakened demand for safe-haven assets.
A gauge of consumer confidence in Britain jumped by the most
in eight years this month, boosted by the country's coronavirus
vaccine programme.
A more pessimistic tone on Friday to Britain's protracted
talks with the EU weakened the pound, with only days remaining
before the UK leaves the bloc's single market on Dec. 31.
The EU warned there were just hours left to strike a deal,
undermining British domestically focused mid-caps .FTMC as the
prospect of trade tariffs in the New Year loomed.
"The EU-UK talks could well go right up to the wire as
neither side wants to be seen be giving in too easily. It's all
about the optics for both sides, so it could take a little bit
longer than most people are comfortable with," said Michael
Hewson, chief market analyst at CMC Markets.
The British pound slipped 0.3% to $1.3544 GBP=D4 , off the
two-and-a-half-year high it hit on Thursday.
Asian shares slipped on Friday after Reuters reported that
the United States is set to add dozens of Chinese companies,
including the country's top chipmaker SMIC 0981.HK , to a trade
blacklist later in the day. MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS dropped 0.4% from Thursday's record. Mainland
Chinese shares .CSI300 fell 0.35% while Hong Kong's Hang Seng
.HSI lost 0.67%.
Japan's Nikkei .N225 dipped 0.2%, facing strong resistance
around 27,000.
The dollar index stood at 89.84 =USD , having slipped below
90 for the first time in two and a half years.
The euro traded at $1.2265 EUR= , having hit a
two-and-a-half-year high of $1.2273 on Thursday.
Bitcoin rose 0.7% to $22,986 BTC=BTSP after breaking
$20,000 on Wednesday, setting off a fresh wave of buying.
Spot gold XAU= eased to $1,885.93 per ounce from a
one-month high of $1,896.2 the day before. Copper CMCU3
touched its highest levels in almost eight years.
Oil climbed to a nine-month high before easing in Asia on
Friday. Brent crude LCOc1 futures traded at $51.39 a barrel,
down 0.2% on day but not far from Thursday's peak of $51.90.
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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
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(Editing by Mark Heinrich)