(New throughout; updates prices, markets activity, analyst
comment)
* Dow Jones Industrial Average, S&P 500 up more than 1%
* Pound gains 0.8% on Brexit optimism
* Battered dollar down 0.3%
* Gold gains over 1% on stimulus hopes
* Oil prices up as investors focus on vaccine rollout
By Matt Scuffham
NEW YORK, Dec 15 (Reuters) - Stocks gained and the dollar
hovered near a 2-1/2-year low on Tuesday as positive coronavirus
vaccine news and progress toward further U.S. fiscal stimulus
and a Brexit deal encouraged investors to embrace risk.
Optimism that a $1.4 trillion spending package to help the
pandemic-battered U.S. economy could be imminent grew after
House of Representatives Speaker Nancy Pelosi invited other top
congressional leaders to meet later on Tuesday to hammer out a
deal. Despite alarming COVID-19 infection and death rates across
Europe and the United States, progress on vaccine rollout
continued. Moderna Inc's COVID-19 vaccine appeared set for
regulatory authorization this week. The Dow Jones Industrial Average .DJI rose 345.49 points,
or 1.16%, to 30,207.04, the S&P 500 .SPX gained 43.24 points,
or 1.19%, to 3,690.73 and the Nasdaq Composite .IXIC added
114.17 points, or 0.92%, to 12,554.21.
Positive vaccine developments and hopes of greater fiscal
stimulus have powered stock markets over the past few weeks,
lifting shares to record highs. But the gains are prompting
investors to speculate when markets will hit their peak.
"I don't think we can go much further in the short term on
vaccine optimism," said Simon Maughan, head of Trading Alpha at
Liquidnet. "Profit-taking is kicking in but you can't see it in
the indices because the indices are large-tech dominated."
The number of coronavirus deaths in the United States
exceeded 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 across Europe were also set to impose new
restrictions during the holiday season to limit the spread of
the virus. Germany adopted a stricter lockdown on Sunday.
"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 in Amsterdam.
Europe's broad FTSEurofirst 300 index .FTEU3 added 0.27%,
at 1,517.26.
The MSCI world equity index .MIWD00000PUS , which tracks
shares in 45 nations, rose 4.76 points or 0.76%, to 633.6.
'FRIENDLY BACKDROP'
Last week, the United States authorized the emergency use of
its first COVID-19 vaccine, developed by Pfizer and BioNTech.
The vaccine has already been authorized in several countries,
including Britain and Canada.
"The start of vaccine approvals and distribution heightens
our confidence in strong global growth in 2021. Combined with
supportive policy and a fresh decline in U.S. real yields, this
remains a friendly backdrop for cyclical and risky assets,"
Goldman Sachs strategists said.
Investors' heightened risk appetite resulted in little
demand for safe-haven currencies. The dollar index .DXY , which tracks the greenback versus a
basket of six currencies, fell 0.254 points or 0.28%, to 90.457.
The pound rose as markets grew more optimistic a Brexit deal
would be reached ahead of the Dec. 31 deadline. The pound was up
0.8% at $1.3431. The euro EUR= was last up 0.07%, at $1.2151.
Gold gained more than 1%, bolstered by expectations of more
coronavirus relief aid.
Spot gold prices XAU= rose $24.4901 or 1.34%, to $1,851.66
an ounce. U.S. gold futures GCv1 settled up 1.3% at $1,855.30.
"There is the possibility of getting stimulus passed and
that is what the gold market has been waiting for," said Jeffrey
Sica, founder of Circle Squared Alternative Investments.
Oil prices rose as investors focused on COVID-19 vaccine
rollout, looking past the tightening of lockdowns in Europe and
forecasts for a slower-than-expected recovery in fuel demand.
Brent crude LCOc1 settled up $0.47, or 0.93%, at $50.76 a
barrel. U.S. crude CLc1 settled up $0.63, or up 1.34%, at
$47.62 per barrel.
"The crude market continues to seize upon the future outlook
of the post-pandemic period, which could be as soon as next
summer. A lot of us in the market sense the demand is lurking,"
said John Kilduff, partner at Again Capital in New York.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS fell 1.66 points or 0.26%, to 640.29.
The yen JPY= was last down 0.29%, at $103.7300.