* MSCI all-country world index strikes all-time high
* Dollar hits two-year low
* Fed confirms backstop, Congress mulls stimulus
* Brexit trade deal hopes boost sterling to May 2018 highs
By Thyagaraju Adinarayan and Tom Westbrook
LONDON/SINGAPORE, Dec 17 (Reuters) - World stocks scaled new
peaks and oil marched higher on Thursday as investors lapped up
risky assets on hopes of a U.S. fiscal stimulus and the Federal
Reserve's pledge to keep pumping cash into markets.
From stocks to safe-haven gold and volatile bitcoin,
financial assets were in festive mood. Bitcoin hit another
all-time high after first shattering the $20,000 level on
Wednesday.
U.S. congressional negotiators were "closing in on" a $900
billion COVID-19 aid bill expected to include $600-$700 stimulus
checks to individuals, lawmakers said on Wednesday.
Such checks issued during Spring led to money pouring into
stock markets and bitcoin from punters, helping stocks recover
quickly from the COVID-19 blow. A trader in London pointed to
chances of a new retail-led boost to stock markets.
The general risk-on mood sent dollar to 2-1/2-year lows
against major peers, while the MSCI world stock index
.MIWD00000PUS reached a new high of 639.64. The index has
climbed 16% since the end of October. Since then, multiple
COVID-19 vaccine breakthroughs have been announced.
"While we expect stocks to benefit further from positive
news on vaccine rollouts and U.S. fiscal support, the same
cannot be said for the US dollar," said Mark Haefele, Chief
Investment Officer at UBS Global Wealth Management.
"We see further (dollar) weakness ahead."
European stocks .STOXX and the euro rallied for the fourth
straight session as investors built up positions in riskier
assets, anticipating a sharp economic recovery in 2021 backed by
wider vaccine rollouts and ultra-easy monetary policy.
The British pound hit May 2018 highs on hopes of a
post-Brexit trade deal.
In Asia, MSCI's broadest index of Asia-Pacific shares
outside Japan .MIAPJ0000PUS rose 0.6% to a record high.
Japan's Nikkei .N225 rose 0.2% - just shy of a 29-year peak.
.T
Wall Street stock futures were pointing to more upside, with
S&P 500 futures ESc1 hitting a record high after the Nasdaq's
.IXIC record close on Wednesday.
SANTA RALLY
Brent crude oil futures LCOc1 rose 1.2% to $51.71 a
barrel, their highest since early March - before over-production
fears and virus worries pushed oil prices off a cliff. O/R
"My suspicion is markets are inclined to extend this rally
for two reasons," said Vishnu Varathan, head economist at Mizuho
in Singapore, citing U.S. monetary policy support and vaccine
rollouts.
"If new infection numbers don't go crazy...I think there is
some scope for a so-called Santa rally into the end of the
year," he said.
U.S. Federal Reserve Chairman Jerome Powell vowed on
Wednesday to keep pouring cash in to markets until the U.S.
economic recovery is secure.
Bond traders were disappointed he did not extend the Fed's
purchase program deeper down the yield curve, and U.S.
Treasuries sold off at longer tenors, but others took it as a
signal the bank will have their back. US/
The Swiss National Bank kept its ultra-expansive monetary
policy on hold, keeping the world's lowest interest rates and
staying ready to launch currency interventions despite being
labelled a currency manipulator by the United States.
The Swiss Franc was last at 0.8835.
Better-than-expected labour data in Australia pushed the
Aussie AUD= as high as $0.7624, its strongest since mid-2018.
AUD/
The Aussie is also riding high on surging prices for iron
ore and a mood that has pushed currencies in Malaysia MYR= ,
Singapore SGD= , Thailand THB= , Taiwan TWD= , Sweden SEK=
and Norway NOK= to milestone peaks. EMRG/FRX
The kiwi NZD= rose to its strongest since early 2018 after
New Zealand's economic growth beat expectations. U.S. Treasuries steadied, with the yield on benchmark
ten-year government bonds US10YT=RR flat at 0.9246%.
Cryptocurrency bitcoin BTC=BTSP extended gains after
breaking past $20,000 overnight. It rose 8% to $23,058.
Investors are attracted by its momentum - it is up 200% this
year - and its purported resistance to inflation because of its
limited supply. Gold XAU= rose 0.3% to $1,869 an ounce. GOL/
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
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
Global stock indexes 2020 https://tmsnrt.rs/3mtrVXe
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
(Editing by Timothy Heritage)