World stocks hit record on vaccine hope, dollar lower for fifth straight session
By Chuck Mikolajczak NEW YORK (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 shares gained 0.78% after the drugmaker said its COVID-19 vaccine was 95% effective and the company would apply for emergency U.S
By Chuck Mikolajczak
NEW YORK (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
Pfizer's announcement came on the heels of a similar report from Moderna Inc
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
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
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
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.
Safe haven gold
(Additional reporting by Shivani Kumaresan in Bengaluru and Stephen Culp in New York; Editing by Kirsten Donovan and Jonathan Oatis)
This story has not been edited by Firstpost staff and is generated by auto-feed.
By Robin Emmott and John Irish | BRUSSELS/PARIS BRUSSELS/PARIS France and Germany will agree to a U.S. plan for NATO to take a bigger role in the fight against Islamic militants at a meeting with President Donald Trump on Thursday, but insist the move is purely symbolic, four senior European diplomats said.The decision to allow the North Atlantic Treaty Organization to join the coalition against Islamic State in Syria and Iraq follows weeks of pressure on the two allies, who are wary of NATO confronting Russia in Syria and of alienating Arab countries who see NATO as pushing a pro-Western agenda."NATO as an institution will join the coalition," said one senior diplomat involved in the discussions. "The question is whether this just a symbolic gesture to the United States
BEIJING Chinese President Xi Jinping on Wednesday called for greater efforts to make the country's navy a world class one, strong in operations on, below and above the surface, as it steps up its ability to project power far from its shores.China's navy has taken an increasingly prominent role in recent months, with a rising star admiral taking command, its first aircraft carrier sailing around self-ruled Taiwan and a new aircraft carrier launched last month.With President Donald Trump promising a US shipbuilding spree and unnerving Beijing with his unpredictable approach on hot button issues including Taiwan and the South and East China Seas, China is pushing to narrow the gap with the U.S. Navy.Inspecting navy headquarters, Xi said the navy should "aim for the top ranks in the world", the Defence Ministry said in a statement about his visit."Building a strong and modern navy is an important mark of a top ranking global military," the ministry paraphrased Xi as saying.