* S&P 500, Nasdaq, Dow on course for yearly gains
* Crude prices likely to confirm 20% drop in 2020
* Dollar set for worst year since 2017
* Graphic: 2020 asset performance http://tmsnrt.rs/2yaDPgn
* Graphic: World FX rates in 2020 http://tmsnrt.rs/2egbfVh
(Recasts with U.S. market open;, changes dateline; previous
LONDON)
By Stephen Culp
NEW YORK, Dec 31 (Reuters) - U.S. stocks were little changed
on Thursday and crude oil prices retreated as investors prepared
to close the book on a turbulent year of pandemic, recession and
recovery.
All three major U.S. stock indexes were near flat, on track
to exit 2020 like a lamb, much the way they entered it. But in
the intervening months, they both roared and plummeted as
economic shutdowns to contain the coronavirus brought markets to
their knees.
The indexes are on course to end the year on a high note.
Equities bounced back with a vengeance following the plunge in
March, and the Nasdaq, S&P 500 and Dow are set to show
respective annual gains of around 43%, 15% and 6%.
"Unless there's a big news item, traders and investors are
happy with a 15% year for the S&P 500," said Oliver Pursche,
president of Bronson Meadows Capital Management in Fairfield,
Connecticut. "The vaccine rollout is coming along - that's a
positive that's being offset by surging coronavirus cases."
Pursche believes the momentum could carry over into the new
year.
"I'm optimistic for 2021 in terms of equity returns," he
said. "We could see another double-digit year for the S&P, which
would make it an unbelievable four-year run."
Initial jobless claims USJOB=ECI unexpectedly dropped for
the second straight week, according to the Labor Department, but
remain elevated, suggesting layoffs remain stubbornly high as
the economy stumbles through a COVID-19 resurgence. President Donald Trump was expected to fly back to
Washington on Thursday, cutting his New Year's Eve festivities
short to pick up his fight with Congress over a defense bill and
stimulus checks. Nations around the world struggle to deploy vaccines to end
the global health crisis. About 2.8 million Americans have been
inoculated so far, falling well short of the year-end goal of 20
million. Worldwide, deaths from COVID-19 https://apac1.apps.cp.thomsonreuters.com/cms/?navid=1592404098
have surpassed 1.8 million. In the United States, more than
340,000 have died from the disease.
The Dow Jones Industrial Average .DJI fell 19.05 points,
or 0.06%, to 30,390.51, the S&P 500 .SPX gained 1.42 points,
or 0.04%, to 3,733.46 and the Nasdaq Composite .IXIC dropped
10.55 points, or 0.08%, to 12,859.45.
European stocks ended the session lower as tighter
coronavirus restrictions in the UK and higher U.S. tariffs on
some EU products dampened optimism on Britain's last day as a
member of one of the world's largest trading blocs. The pan-European STOXX 600 index .STOXX lost 0.32% and
MSCI's gauge of stocks across the globe .MIWD00000PUS shed
0.13%.
Emerging market stocks rose 0.21%. MSCI's broadest index of
Asia-Pacific shares outside Japan .MIAPJ0000PUS closed 0.07%
higher, while Japan's Nikkei .N225 lost 0.45%.
Crude oil prices dipped on continued weak demand and are on
course to end 2020 about 20% lower than they were at the start
of the year. U.S. crude CLcv1 fell 0.41% to $48.20 per barrel and Brent
LCOcv1 was last at $51.18 per barrel, down 0.87% the day.
U.S. Treasury yields were lower on the last trading day of
the year, pulling the yield curve flatter, as thin volume
exaggerated market moves.
Benchmark 10-year notes US10YT=RR last rose 3/32 in price
to yield 0.9165%, from 0.926% late on Wednesday.
The 30-year bond US30YT=RR last rose 9/32 in price to
yield 1.6502%, from 1.662% late on Wednesday.
The dollar was slightly higher against a basket of world
currencies, but remained on track for its worst year since 2017
as expectations for further fiscal aid and easy monetary policy
from the U.S Federal Reserve prompted investors to shun the
greenback. The dollar index .DXY rose 0.22%, with the euro EUR=
down 0.49% to $1.2235.
The Japanese yen weakened 0.05% versus the greenback at
103.25 per dollar, while Sterling GBP= was last trading at
$1.3664, up 0.31% on the day.
Gold prices rose, and the safe-haven metal was set to notch
its best year in a decade due to economic uncertainties caused
by the pandemic. Spot gold XAU= added 0.3% to $1,899.13 an ounce.
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