* Dow Jones Industrial Average down 0.1%, S&P 500 flat
* European stocks gain 0.3%
* Sterling gains 1.2% as Brexit talks extended
* Euro up 0.3%
* Eyes on U.S. Congress, Fed for stimulus guidance
* Graphic: 2020 asset performance http://tmsnrt.rs/2yaDPgn
By Matt Scuffham
NEW YORK, Dec 14 (Reuters) - Global stock markets were mixed
on Monday as the start of the COVID-19 vaccine roll-out in the
United States offered some respite to investors, but spikes in
infection and death rates tempered optimism.
Currency markets were dominated by news that London and
Brussels had agreed to "go the extra mile" to try to salvage a
Brexit trade agreement, lifting the British pound and euro
against the struggling dollar. Progress on coronavirus vaccines boosted sentiment, with the
first doses being shipped across the United States as part of an
effort to inoculate more than 100 million people by the end of
March. However, some traders noted that optimism about the vaccine
had already been factored in, limiting upside for investors.
"We've been trading off the same vaccine headlines for three
or four months and eventually you've got to think that most of
that is priced in," said Dennis Dick, a trader at Bright Trading
LLC. "This market is 100% relying on this vaccine".
Second waves of the pandemic forced Germany, the Netherlands
and London back into stricter lockdowns. Cases
surged in Japan, South Korea and parts of the United States as
well.
"The vaccine has and will likely continue to provide a
tailwind to the market that is allowing investors to look beyond
record case levels, hospitalizations and deaths," analysts at
JPMorgan said in a note.
U.S. stocks showed modest gains.
The Dow Jones Industrial Average .DJI fell 43.05 points,
or 0.14%, to 30,003.32, the S&P 500 .SPX lost 0.88 point, or
0.02 percent, to 3,662.58 and the Nasdaq Composite .IXIC added
101.51 points, or 0.82%, to 12,479.38.
Europe's broad FTSEurofirst 300 index .FTEU3 added 0.30%,
at 1,513.23.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS fell 2.47 points, or 0.38%, to 642.04.
In currencies, Sterling was the day's big mover, gaining on
both the euro and the dollar as what last week had appeared to
be evaporating prospects of a Brexit agreement came back to
life. The pound GBP= was last trading at $1.3335, up 0.85% on
the day after earlier climbing 1.2% to $1.3423 GBP=D3 . The
euro EUR= was last up 0.30 percent, at $1.2147.
"Even in the face of amped up rhetoric, we continue to think
a deal is the most plausible outcome," said Gilles Moec, AXA
Group chief economist.
The dollar index .DXY , which tracks the greenback versus a
basket of six currencies, fell 0.261 point, or 0.29 percent, to
90.715.
The yen JPY= was last up 0.05 percent, at $104.0600.
The Federal Reserve's policy meeting on Dec. 15-16 will be
an added hurdle for the dollar. The market is assuming the
central bank will merely refine its forward guidance on policy
rather than buying more bonds or "twisting" its portfolio to add
longer-dated debt.
The Bank of England on Thursday and the Bank of Japan on
Friday will close out central bank meetings for 2020. Before
that, Wednesday brings the global flash PMIs and on Tuesday,
China will issue its monthly data.
"The risk is then if the Fed does unveil a surprise twist at
this meeting, then Treasuries could rally and the USD could
fall," said Tapas Strickland, a director of economics at NAB.
An extra wrinkle is the chance of a U.S. deal on fiscal
stimulus after a top Democrat hinted a compromise was possible
to get an agreement past Republican objections. Negotiators in the U.S. Congress were nearing agreement on a
massive government spending deal that would avoid a government
shutdown and could serve as the vehicle to pass a fresh round of
aid to a coronavirus-hit nation. Gold prices slid on Monday as the rollout of a COVID-19
vaccine in the United States drove optimism in wider financial
markets, with investors banking on a resultant economic
recovery.
Spot gold prices XAU= fell $12.5172 or -0.68 percent, to
$1,826.51 an ounce. U.S. gold futures GCv1 settled down 0.6%
at $1,832.10
Oil prices eased on Monday as persistent oversupply in the
market overshadowed hopes that a rollout of coronavirus vaccines
will lift global fuel demand.
Brent crude LCOc1 for February delivery settled up $0.32,
or up 0.64 percent, at $50.29 a barrel. U.S. crude CLc1
settled up $0.42, or up 0.9 percent, at $46.99 per barrel.
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Asia stock markets https://tmsnrt.rs/2zpUAr4
Asia-Pacific valuations https://tmsnrt.rs/2Dr2BQA
Rebound of major world markets https://tmsnrt.rs/370lXbY
Sterling trade-weighted index https://tmsnrt.rs/2Wf7t1P
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(Editing by Larry King, Alison Williams and Dan Grebler)