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GLOBAL MARKETS-World shares hold close to all-time highs; U.S. markets close for Thanksgiving

Published 26/11/2020, 10:02
© Reuters.
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* Graphic: 2020 asset performance http://tmsnrt.rs/2yaDPgn
* Graphic: World FX rates in 2020 http://tmsnrt.rs/2egbfVh
* Reuters Live Markets blog: LIVE/

LONDON, Nov 26 (Reuters) - European shares were mixed on
Thursday and world shares held near all-time highs after a
strong Asian session in which market euphoria around COVID-19
vaccines, Joe Biden's U.S. presidential election win and hopes
for further stimulus outweighed worsening U.S. data.
World shares are having their best month on record this
November, boosted by a slew of positive vaccine announcements
and hopes that Biden's administration will deliver more economic
stimulus and political stability.
The MSCI world equity index, which tracks shares in 49
countries, hit an all-time high on Wednesday and held close to
this level on Thursday, up 0.2% on the day at 0821 GMT
.MIWD00000PUS , as markets shrugged off the latest rise in U.S.
jobless claims. Europe's STOXX 600, which is also having its best month
ever, up 14.5% in November, was flat on the day .STOXX , while
London's FTSE 100 was down 0.4% .FTSE .
Markets also took a boost from minutes from the U.S. Federal
Reserve's Nov. 4-5 meeting, which showed that officials
discussed how the central bank's asset purchases could be
adjusted to provide additional support to the economy.
The minutes said policymakers may give new guidance about
its bond-buying "fairly soon". "Downward pressure on the U.S. dollar has been reinforced by
the release of the latest FOMC minutes which signalled that the
Fed is likely to strengthen their QE program at the next FOMC
meeting on 16th December," wrote MUFG strategist Lee Hardman in
a note to clients.
"A strong commitment to maintain QE stimulus would provide
further reassurance that the punch bowl is unlikely to be taken
away as soon as next year," he said.
The U.S. dollar slipped around 0.1% and was at 91.922 versus
a basket of currencies at 0828 GMT, having touched its lowest in
nearly three months in early London trading =USD .
It also lost out versus the safe-haven Japanese yen, down
0.2% on the day at 104.3 at 0832 GMT JPY=EBS .
U.S. markets are closed for Thanksgiving on Thursday. Biden
urged Americans to avoid big family gatherings and to wear
protective masks and maintain social distancing as COVID-19
cases soar. "While the release of vaccine results is promising, we do
not know yet when this pandemic will be completely over and that
is what investors will continue to struggle with," analysts at
the FXTM brokerage told clients.
"Wednesday's economic data showed that U.S. jobless claims
increased for a second consecutive week suggesting more pain
ahead as business restrictions and partial lockdowns continue to
hurt employment," they added.
In Europe, a survey showed that German consumer morale fell
further heading into December, as a partial lockdown in Europe's
largest economy hit households' income and willingness to spend
money. German Chancellor Angela Merkel told parliament that
lockdown measures will be in place until at least the end of
December and possibly longer. The euro was up 0.1% against the dollar, at $1.1926 at 0831
GMT EUR=EBS . Euro-sterling was up 0.2% at 89.225 EURGBP=D3 .
Markets participants are closely watching trade talks
between Britain and the European Union, with little more than a
month until the status-quo transition period ends on Dec. 31.
Ireland's prime minister said on Wednesday that a "good
result" was still possible, but Ursula von der Leyen, head of
the European Commission, said that the bloc was ready for the
possibility of a no-deal exit. Britain's finance minister said on Thursday that "it's clear
what the shape of the deal looks like" but that the United
Kingdom should not be stretching for a deal at any cost.
Euro zone government bonds were little changed, with
Germany's benchmark Bund yield at -0.571% DE10YT=RR , as
investors waited for the European Central Bank's October meeting
minutes. Oil prices slipped, stalling a rally which saw futures hit
8-month highs on Wednesday. Gold prices picked up as investors bet that the grim U.S.
economic data would lead to further stimulus. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Emerging markets http://tmsnrt.rs/2ihRugV
G3 central bank balance sheets https://tmsnrt.rs/3nYwB8G
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