GLOBAL MARKETS-World stocks edge higher on vaccine hopes, dollar slips

* MSCI World index up 0.1%, just off record high
* U.S. retail sales highlight fragile recovery
* German 10-yr debt yield lowest since Pfizer vaccine
* Dollar dips to Nov. 9 lows against basket of currencies

By Simon Jessop
LONDON, Nov 18 (Reuters) - Global shares edged higher and
the dollar slipped on Wednesday as weak U.S. retail sales and a
surge of new coronavirus cases tempered market euphoria after
recent COVID-19 vaccine breakthroughs.
The MSCI World index .MIWD00000PUS was up 0.1% at 1013
GMT, just shy of the previous session's record high.
After opening lower, European shares crawled back into the
black, with the STOXX 600 index .STOXX up 0.3%, tracking
overnight gains in Asia where China stimulus hopes helped MSCI's
broadest regional gauge .MIAPJ0000PUS rise 0.7%. U.S. stock futures also pointed to firmer open on Wall
Street ESc1 , up 0.2%, after soft U.S. retail sales data, a
rise in COVID-19 cases and uncertainty over fresh stimulus
measures in the world's largest economy had sapped sentiment.
While the release of two successful coronavirus vaccine
trial data over the last week had buoyed markets, the still-high
infection rate globally had acted to trim gains, said Jane
Shoemake, London-based fund manager at Janus Henderson.
"People can see light at the end of the tunnel now and the
markets clearly responded to that, but it's not going to go up
in a straight line because we've still got to get through the
winter... (and) that is going to continue to temper some of the
exuberance people feel."
Concern about the still-high infection rate in the United
States acted to crimp dollar demand, with the greenback sliding
against a basket of currencies =USD to its lowest since Nov.
9.
That had followed weak retail sales data overnight and comes
as hopes for fresh U.S. stimulus remain hampered by political
gridlock, pinning near-term hopes on action from the U.S.
central bank. [
Strong corporate earnings in the third quarter also
continued to underpin the positive stock market sentiment, said
analysts at Barclays, with firms "confident on the outlook and
in control of costs", they said in a note to clients.
"This reinforces the case for a strong earnings rebound and
pick-up in corporate activity in 2021, as the cyclical recovery
unfolds."
Cormac Weldon, Head of U.S. Equities at UK asset manager
Artemis said while the overall picture for investors was
brighter, the recovery was likely to be uneven.
"Low inventories and the need to manufacture and distribute
goods are likely to be the first drivers of the recovery, with
the re-emergence of consumer demand adding a powerful second
phase."
With stocks still well supported, other risk markets also
took heart, with U.S. crude futures CLc1 and Brent crude
futures LCOc1 both up just over 1%, bolstered by hopes OPEC
will delay a planned increase in production. Safe haven gold, meanwhile, was down 0.3% at $1,872.6 an
ounce, with U.S. gold futures GCv1 also slightly lower.
In Europe's debt markets, Germany saw its benchmark 10-year
government bond yield fall to its lowest since Pfizer announced
its COVID-19 vaccine update a week and a half ago.
"Yields continue to grind lower as more warning signs flash
about the near-term outlook," said Benjamin Schroeder, senior
rates strategist at ING.
"Euro zone spreads appear to have eyes only for QE
(quantitative easing), shrugging off volatility and EU
setbacks," he said, referring to news this week that Hungary and
Poland have blocked the adoption of the 2021-2027 budget and
recovery fund by European Union governments.

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COVID-19 https://tmsnrt.rs/3lKwe14
COVID-19 Global Tracker COVID-19 Global Tracker https://tmsnrt.rs/2FkV6wq
U.S. retail sales https://tmsnrt.rs/2Uz7jkY
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(Editing by Kim Coghill, Larry King and Toby Chopra)