(Recasts, adds details, updates prices)
* World shares little changed
* Market worried by rise in infections, lockdowns
* China's November industrial output steps up
* Pound pulls back after Brexit deal hopes rebound
* U.S. dollar, Treasury yields steady ahead of FED
By Danilo Masoni and Anshuman Daga
MILAN/SINGAPORE, Dec 15 (Reuters) - World shares steadied on
Tuesday and currencies moved in tight ranges as rising COVID-19
cases and social restrictions ahead of the busy Christmas
shopping season balanced optimism over a vaccine-driven economic
recovery next year.
MSCI world equity index .MIWD00000PUS , which tracks shares
in 49 countries, was flat by 0901 GMT after losses in Asia
overnight, although European shares .STOXX managed to post
slight gains after a weaker open.
The number of coronavirus deaths in the United States
crossed 300,000 on Monday as the hardest hit nation started its
first vaccine inoculations, while tighter COVID-19 restrictions
were imposed on London. Other countries from France to Italy and the Netherlands
were also set to impose new restrictions during the holiday
season to rein the contagion after Germany imposed a stricter
lockdown on Sunday.
"Coronavirus case growth in Europe is accelerating... In any
case, much of Europe will have to weather tighter restrictions
until at least early to mid-January. Q4 will be lost quarter for
growth, but that should surprise no one," said AFS analyst Arne
Petimezas.
Most Asian markets retreated, with MSCI's index of
Asia-Pacific shares outside Japan .MIAPJ0000PUS falling 0.4%
to its lowest level in more than a week after hitting a string
of record highs in recent weeks.
China's blue-chips .CSI300 , however, ended 0.2% higher,
helped by upbeat factory data which expanded for an eighth month
in a row as an economic recovery gathered pace. Positive news on vaccines, along with a market-friendly
outcome of the U.S. presidential election, has powered gains
over the last few weeks, lifting world shares to record highs.
On Tuesday the MSCI world equity index was just 1.1% below
its all time peak and is up 11% this year.
EMERGENCY USE
Last week, the United States authorised the emergency use of
its first COVID-19 vaccine, developed by Pfizer and BioNTech.
The vaccine has already been authorised in a handful of
countries including Britain and Canada.
"We now know we are building a bridge to somewhere,
providing clarity for policymakers, households and companies
about getting to a post COVID stage," strategists at BlackRock
Investment Institute said in a report.
"Yet disappointing jobs data in recent weeks pointed to near
term risks as the virus surges around the U.S., potentially
slowing the restart," they said.
On Monday, the S&P 500 .SPX closed down 0.4%, the Nasdaq
Composite .IXIC gained 0.5% and the Dow Jones Industrial
Average hit a record high but fell back 0.6% for the day.
E-Mini futures for the S&P 500 ESc1 rose 0.6%.
In foreign exchange markets, the pound fell 0.3% against the
dollar at $1.3289 GBP=D4 after London imposed tighter COVID-19
restrictions. The pound rose 0.8% on Monday as the UK and Europe
agreed to continue Brexit talks after it reached a 2 1/2-year
high of $1.3540 this month.
The dollar =USD traded near 2-1/2-year lows against major
peers as demand for the safest assets flagged. USD/
Euro zone bond yields dipped on the concerns about rising
COVID-19 cases in major economies.
Germany's benchmark 10-year bond yield dipped to -0.627%
DE10YT=RR , nearing recent one-month lows of around -0.64%,
while Italy's 10-year yield fells to new record low of 0.497%.
U.S. Treasury yields US10YT=RR were stable at 0.8964%
ahead of the Federal Reserve's two-day policy meeting on
Tuesday.
Market expectations are growing that the Fed will further
ease monetary policy by expanding its bond buying programme, as
U.S. lawmakers struggle to agree on a fiscal stimulus package.
The Bank of England and the Bank of Japan also close out
their 2020 meetings this week.
Gold prices XAU= advanced 1% to $1,835.9 per ounce.
Brent crude oil prices LCOc1 dipped 0.3% to $50.13 a
barrel as tighter lockdowns in Europe and an OPEC forecast for a
slower recovery in demand next year outweighed relief from the
roll-out of coronavirus vaccines. London copper prices CMCU3 rose 0.3%, underpinned by the
strong manufacturing output data from China. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Global assets http://tmsnrt.rs/2jvdmXl
Global currencies vs. dollar http://tmsnrt.rs/2egbfVh
Emerging markets http://tmsnrt.rs/2ihRugV
MSCI All Country World Index Market Cap http://tmsnrt.rs/2EmTD6j
Asia stock markets: https://tmsnrt.rs/2zpUAr4
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