Global stock markets slide; but on pace for best month ever

(Updates through midday U.S. trading)
By David Randall
NEW YORK, Nov 30 (Reuters) - World stock markets dipped on
Monday to close a record-breaking month as the prospect of a
vaccine-driven economic recovery next year and further central
bank stimulus measures eclipsed immediate concerns about the
spiking coronavirus pandemic.
November's record 13% leap has added $6.7 trillion - or $155
million a minute - to the value of world equities. .EU
.N
At the same time, oil, industrial commodities and other risk
assets have surged, with emerging-market currencies posting
their largest gains in almost two years EMRG/FRX while
safe-havens such as the dollar and gold slipped.
"It has been a very, very strong month for markets,
especially on the equity side but also on the fixed income side
too," said Elwin de Groot, Rabobank's head of macro strategy.
The positive developments on vaccines and the swiftness with
which they are likely to be rolled out have been key drivers.
"This market still remains very much supported by liquidity
from the central banks," De Groot said. With the European
Central Bank set to provide more stimulus next month, "the
market view seems to be, 'What can possibly go wrong?'"
MSCI's gauge of stocks across the globe .MIWD00000PUS shed
1.03% following broad declines in Asia and Europe. Many European
markets are wrapping up their best month ever, with France up
21% and Italy almost 26%. The Nikkei's 15% leap in Japan .N225
was its best month since 1994. .T
On Wall Street, the Dow Jones Industrial Average .DJI fell
347.47 points, or 1.16%, to 29,562.9, the S&P 500 .SPX lost
27.02 points, or 0.74%, to 3,611.33 and the Nasdaq Composite
.IXIC dropped 60.88 points, or 0.5%, to 12,144.97.
"Markets are overbought and at risk of a short-term pause,"
said Shane Oliver, head of investment strategy at AMP Capital.
"However, we are now in a seasonally strong time of year and
investors are yet to fully discount the potential for a very
strong recovery next year in growth and profits as stimulus
combines with vaccines."
The surge in stocks has put competitive pressure on
safe-haven bonds, but much of that has been cushioned by
expectations of more asset buying by central banks.
U.S. benchmark 10-year Treasury notes US10YT=RR last fell
2/32 in price to yield 0.8471%, from 0.842% late on Friday.
A survey showing factory activity in China beat forecasts in
November, while the country's central bank surprised with an
extra helping of cheap loans also boosted sentiment.
Moderna provided the regular Monday dose of vaccine news,
saying it was applying for emergency-use authorization from the
U.S. Food and Drug Administration and conditional approval from
the European Union. Federal Reserve Chair Jerome Powell testifies to Congress on
Tuesday amid speculation of further policy action at the Fed's
next meeting in mid-December.
The dollar index =USD rose 0.169%, climbing from lows last
seen in mid-2018. /FRX
One major casualty of the rush to risk has been gold, which
was near a five-month trough at $1,769 an ounce XAU= , having
shed 5.6% in November.
Oil, in contrast, has benefited nearly 30% from the prospect
of a revival in demand should vaccines allow travel and
transport to resume next year. O/R
Some profit-taking set in early on Monday ahead of an OPEC+
meeting to decide whether the producers' group will extend large
output cuts.
U.S. crude CLc1 fell 1.6% to $44.80 per barrel and Brent
LCOc1 was at $47.53, down 1.35% on the day.

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Global assets http://tmsnrt.rs/2jvdmXl
Global currencies vs. dollar http://tmsnrt.rs/2egbfVh
Emerging markets http://tmsnrt.rs/2ihRugV
MSCI All Country Wolrd Index Market Cap http://tmsnrt.rs/2EmTD6j
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