GLOBAL MARKETS-Global stocks, oil lead risk rally on U.S. stimulus hopes

* Traders take on risk across the board
* FTSE 100 leads Europe stock gainers on Brexit deal
* Oil futures recover on hope for higher demand

By Simon Jessop and Stanley White
LONDON/TOKYO, Dec 29 (Reuters) - Global shares rose for the
fourth straight day on Tuesday and oil followed suit as hopes of
fresh U.S. stimulus teed up a strong end to the year for riskier
assets.
The MSCI World Index .MIWD00000PUS was up 0.3% at 0751
GMT, extending recent gains after gains in Asia, where Japanese
stocks hit a 30-year high. MSCI's broadest index of Asia-Pacific
shares outside Japan .MIAPJ0000PUS rose 0.45%.
Early gains in Europe were broad-based, with all major
indexes rising, led by Britain's blue-chip shares. They rose on
their first day of trading since the Christmas Eve agreement of
a trade deal with the European Union.
The FTSE 100 .FTSE rose 1.5% in early deals, on course for
its fourth straight day of gains, led by drugmaker AstraZeneca
AZN.L on news its COVID-19 vaccine is set to be granted
emergency use approval within a few days. The launch of the EU's vaccination programme, hoping to end
the widespread lockdowns that have stalled economies across the
bloc, also bolstered risk appetite, led by beaten-down travel
and leisure stocks, up 2.4%. U.S. stock futures ESc1 also point to a 0.5% higher open
on Wall Street later in the day, underpinned by hopes a $2.3
trillion stimulus package signed into law by President Trump on
Sunday will be approved by the Senate.
The package covers $1.4 trillion in spending to fund
government agencies and $892 billion in COVID-19 relief,
including $2,000 relief cheques to help cushion the economic
impact of the pandemic. The prospect of higher demand helped boost oil prices with
Brent crude futures LCOc1 and U.S. West Texas Intermediate
both up around 1.2%.
"With the Brexit ... and the U.S. stimulus deal now in the
rear-view mirror, there is a sense of relief that we have
avoided the respective worst-case scenarios," said Stephen
Innes, chief global market strategist at Axi, a broker.
Demand for riskier assets weakened the U.S. dollar, which is
often seen as a safe-haven asset. It was down 0.3% against a
basket of currencies and eyeing the 18-month low hit in
November.
Shorting the dollar has been a popular trade. Calculations
by Reuters based on data released by the Commodity Futures
Trading Commission on Monday suggested that trend would persist.
Short positions on the dollar swelled in the week ended Dec. 21
to $26.6 billion, the highest in three months. Elsewhere across FX, sterling GBP=D3 rose 0.4% against the
dollar, reversing two days of losses. The euro EUR= climbed
for the third day in a row, up 0.3%.
A sluggish dollar bolstered gold prices XAU= , which rose
0.4% to $1,878.9 an ounce. GOL/

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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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(Editing by Larry King)