GLOBAL MARKETS-World stocks hit record on vaccine hope, dollar lower for fifth straight session

* MSCI World index hits record before fading
* Late drop sinks U.S. stocks
* Dollar lower for fifth straight session

(Updates with close of U.S. markets, oil settlement prices)
By Chuck Mikolajczak
NEW YORK, Nov 18 (Reuters) - A gauge of global shares
climbed to a record for a third straight day and the dollar
continued to slump on Wednesday as further upbeat COVID-19
vaccine news helped alleviate concerns about rising infection
rates and related economic damage.
On Wall Street, Pfizer Inc PFE.N shares gained 0.78% after
the drugmaker said its COVID-19 vaccine was 95% effective and
the company would apply for emergency U.S. authorization within
days. Pfizer's announcement came on the heels of a similar report
from Moderna Inc MRNA.O on the effectiveness of its vaccine.
Still, with many major equity indexes at or near record
levels, analysts caution additional stimulus measures are needed
to buttress the economy until a vaccine can be widely
distributed, and gains evaporated late in the session.
"It's a confused market because portfolio managers don't
know which time period to focus on," said Tim Ghriskey, chief
investment strategist at Inverness Counsel in New York.
"It's this trade-off between the near term over the six to
nine months of continued spread of the virus and the period
after that when everyone's vaccinated and the virus is
eradicated."
Underscoring the growing pandemic, New York City Mayor Bill
de Blasio announced the city's school district, the largest in
the country, will halt in-person learning on Thursday.
Richmond Federal Reserve President Thomas Barkin said
allowing the Federal Reserve's emergency lending programs to
sunset on Dec. 31 could pose risks to financial markets,
especially as the pandemic is escalating.
The Dow Jones Industrial Average .DJI fell 344.93 points,
or 1.16%, to 29,438.42, the S&P 500 .SPX lost 41.74 points, or
1.16%, to 3,567.79 and the Nasdaq Composite .IXIC dropped
97.74 points, or 0.82%, to 11,801.60.
After a sluggish start, European shares closed higher as
vaccine optimism and a round of takeover deals helped offset
concerns over fresh lockdown measures to slow the spread of the
virus in the region. The pan-European STOXX 600 index .STOXX rose 0.44% and
MSCI's gauge of stocks across the globe .MIWD00000PUS shed
0.52%, touching an intraday record for a third consecutive day
before turning lower late in the session as the U.S. equity
market suffered a swoon heading into the close.
While the U.S. dollar moved off its earlier lows following
better-than-expected U.S. housing data, the greenback was still
on pace for its fifth straight decline as the Pfizer news gave
investors an appetite for some risk taking. The dollar index =USD fell 0.043%, with the euro EUR=
down 0.05% to $1.1855.
The weaker dollar also helped lift the pound, along with
hopes Britain will be able to secure a post-Brexit trade deal
with the European Union before its departure from the EU's
customs union and single market in January. Sterling GBP= was
last trading at $1.327, up 0.22% on the day. U.S. Treasury yields reversed early declines on optimism
over a potential vaccine and after a weak 20-year bond auction
diminished the appeal of the safe-haven debt. Benchmark 10-year
notes US10YT=RR last fell 1/32 in price to yield 0.875%, from
0.872% late on Tuesday.
The increased risk appetite on the vaccine news also helped
oil prices advance, along with hopes OPEC and its allies will
delay a planned increase in oil output.
U.S. crude CLc1 settled up 0.94% at $41.82 per barrel and
Brent LCOc1 was at $44.34, up 1.35% on the day.
Safe haven gold XAU= , meanwhile, dropped 0.5% to $1,870.19
an ounce.

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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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