GLOBAL MARKETS-Stocks dip on U.S. jobs data; dollar down, oil up

* MSCI's all-country stock index hits record, ends flat
* 2020 asset performance http://tmsnrt.rs/2yaDPgn
* Global stock market outlook: https://tmsnrt.rs/3nT0J5r

(Updates to U.S. stock market close)
By Rodrigo Campos
NEW YORK, Nov 25 (Reuters) - Stocks ended near the previous
session record high on Wednesday as Wall Street bumped up
against disappointing job market data, while oil continued to
rise and the dollar weakened further.
The U.S. dollar has lost some of its safe-haven luster as
traders turn to riskier assets, including some funded in other
currencies, following positive news about COVID-19 vaccines and
a seemingly normalizing U.S. transition of power.
Former Fed Chair Janet Yellen's reported nomination to
Treasury secretary has emboldened those risk bets and further
weighed on the dollar.
"From here, the Fed will prove a mere auxiliary to maximize
fiscal impact by ensuring cheap funding," said John Hardy, head
of FX strategy at Saxo Bank.
"The long-term implications of the Yellen nomination are
distinctly dollar negative."
The dollar index =USD fell 0.147%, with the euro EUR= up
0.24% to $1.1916.
The Japanese yen was flat versus the greenback to 104.44 per
dollar, while sterling GBP= was last trading at $1.3383, up
0.20% on the day.
On Wall Street, a surprise jump in weekly jobless claims
added to signs the recovery in the labor market was stalling as
the United States battled a new wave of COVID-19 infections.
MSCI's broadest gauge of world stocks .MIWD00000PUS was
last flat after renewed demand for shares earlier pushed it to a
record high of 622.12.
The rally in global stocks is set to continue for at least
six months, a Reuters poll forecast on Wednesday. But the Dow Jones Industrial Average .DJI fell 173.77
points, or 0.58%, to 29,872.47, the S&P 500 .SPX lost 5.76
points, or 0.16%, to 3,629.65 and the Nasdaq Composite .IXIC
added 57.08 points, or 0.47%, to 12,094.40.
"The question is, who wins the battle: the vaccines, or the
rising cases in the short term?" said Christopher C. Grisanti,
chief equity strategist at MAI Capital Management.
Daily U.S. deaths from COVID-19 surpassed 2,000 for the
first time since May, with hospitals in parts of the country
already full. A separate Reuters survey, meanwhile, found that optimism
around vaccine developments and expectations of a recovery in
corporate confidence and profitability should push European
stocks to near record highs next year.
On Wednesday the pan-European STOXX 600 index .STOXX lost
0.08% while Japan's Nikkei .N225 rose 0.50% after touching a
29-year high. MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS closed 0.57% lower, with Chinese shares capped
by worries about rising debt defaults. The job market data, an unexpected rise in applications for
unemployment insurance, weighed on Treasury yields.
Benchmark 10-year notes US10YT=RR last fell 1/32 in price
to yield 0.8832%, from 0.882% late on Tuesday.
"I think a lot of people got ahead of themselves imagining
that the recovery was taking shape. To me the recovery isn't
taking shape until we have a viable vaccine," said Justin
Lederer, Treasury analyst and trader at Cantor Fitzgerald.
Data showing a surprise drop in weekly U.S. crude
inventories extended a rally in oil prices driven by hopes that
a COVID-19 vaccine will boost fuel demand.
"Crude oil prices are trading at their highest levels since
early March, supported by positive market sentiment as a result
of vaccine news and strong oil demand in Asia," said UBS oil
analyst Giovanni Staunovo.
"We maintain our bullish outlook for next year and target
Brent to hit $60 per barrel at the end of 2021," he added.
U.S. financial markets will be closed on Thursday for the
Thanksgiving holiday. U.S. bonds and stocks will trade on a
partial schedule on Friday.

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World FX rates in 2020 http://tmsnrt.rs/2egbfVh
2020 asset performance http://tmsnrt.rs/2yaDPgn
Global markets enjoying November reign https://tmsnrt.rs/2J7DYvR
Reuters Poll - Global stock market outlook https://tmsnrt.rs/3nT0J5r
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