* MSCI's all-country world index hits record high
* European shares approach nine-month peak before pulling
back
* Wall Street futures fall
* Risk-sensitive currencies supported, bitcoin near record
* 2020 asset performance http://tmsnrt.rs/2yaDPgn
* Global stock market outlook: https://tmsnrt.rs/3nT0J5r
By Tom Wilson
LONDON, Nov 25 (Reuters) - Global shares on Wednesday hit
record highs and were on course for their best month ever, with
investors cheering the prospect of a smooth handover of power
after the U.S. presidential election and confident COVID-19
vaccines would soon be ready.
President-elect Joe Biden on Tuesday introduced his foreign
policy and national security team, after President Donald Trump
cleared the way to prepare for the start of his administration.
Reports that Biden planned to nominate former Federal
Reserve Chair Janet Yellen as Treasury Secretary, potentially
easing the passage of a fiscal-stimulus package to counter
COVID-19 damage, also cheered markets. The renewed demand for shares pushed MSCI's broadest gauge
of world stocks .MIWD00000PUS to a record high of 622.12. It
was last trading flat, on course for a record monthly gain.
The Euro STOXX 600 TOXX> made early gains to near nine-month
highs before pulling back 0.3%, with autos .SXAP and banks
.SX7P weighing.
Futures for the S&P 500 EScv turned lower ahead of the
U.S. Thanksgiving holiday. On Tuesday, the Dow Jones Industrial
Average on Tuesday on Tuesday had cracked 30,000 for the first
time.
"The world is going to look a lot better this time next year
than it does now, and that's what equity markets are
reflecting," said Mike Bell, global market strategist at J.P.
Morgan Asset Management. "The fact is the outlook has
dramatically changed in the last month."
The rally for global stocks is set to continue for at least
six months, a Reuters poll forecast on Wednesday. Optimism around vaccine developments and expectations of a
recovery in corporate confidence and profitability should also
push European stocks to near record highs next year, a separate
Reuters survey found. Earlier, Japan's Nikkei .N225 rose to a 29-year high,
though analysts and fund managers polled by Reuters foresaw a
correction in the near term. MSCI's index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS fell 0.4%, with Chinese shares capped by worries
about rising debt defaults. EASING THE PAIN
Investors bet that forthcoming virus vaccines would help the
industries hit hardest by the pandemic, from tourism to energy.
Global energy shares .MIWD0EN00PUS have risen almost 34%
so far this month, on track for their best month on record as
crude prices rally.
Oil prices held near their highest levels since March on the
improved global economic outlook. Brent futures LCOc1 were up
1.2% to $48.42 per barrel, touching a high last seen in March.
Risk-on moves played out in bond markets, too. Yields on
benchmark euro zone debt rose from record lows, with German Bund
yields DE10YT=RR edged to near their highest levels in almost
a week. Yields rise when bond prices fall.
U.S. Treasuries US10YT=RR were pressured, too, as
investors bet any fiscal stimulus package in Washington would
bring more debt.
Riskier currencies gained against safe havens, though the
under-pressure dollar showed resilience as the morning went on.
The Australian dollar AUD=D3 moved to its highest since
early September, already helped by investors unwinding bets on
additional monetary easing.
Against a basket of six currencies, the dollar =USD turned
positive, gaining 0.1% at 92.224 after falling 0.4% on Tuesday.
The dollar is still expected to fall further as progress on
a vaccine and the expected choice of Yellen as the next U.S.
Treasury secretary relieved two big uncertainties for investors.
The euro EUR=EBS fell against the dollar, and was last
down 0.1% at $1.18835.
Bitcoin edged up 0.8% to $19,1420 BTC=BTSP , staying within
sight of its record peak of $19,666 after notching gains of
nearly 40% in November alone.
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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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