GLOBAL MARKETS-Wall St advances, dollar declines as remarkable year nears finish line

* All three major U.S. stock averages higher
* Dollar sinks to lowest since April 2018
* Stimulus check negotiations continue in Washington
* Graphic: 2020 asset performance http://tmsnrt.rs/2yaDPgn
* Graphic: World FX rates in 2020 http://tmsnrt.rs/2egbfVh

(Updates to U.S. market open, changes dateline to NEW YORK (was
LONDON), changes byline)
By Stephen Culp
NEW YORK, Dec 30 (Reuters) - Wall Street advanced and the
dollar dipped to its lowest in more than two years on Wednesday,
the penultimate trading day in an extraordinary year of
pandemic, recession and recovery.
All three major U.S. stock indexes were up in a broad rally,
as impending stimulus and the ongoing rollout of COVID-19
vaccines fed optimism over economic recovery in 2021.
"I would caution against reading too much into trading
action this week because it's a shortened week and volumes are
typically down, so there tends to be more volatility," said
Chuck Carlson, chief executive officer at Horizon Investment
Services in Hammond, Indiana.
"The dollar is a continuation of what we've seen in the last
few months," Carlson added. "This is partly in anticipation that
since Europe had a deeper decline, its rebound will have more of
a snap-back."
U.S. Senate Majority Leader Mitch McConnell introduced a
bill late Tuesday that combines beefier $2,000 direct fiscal aid
payments to Americans with provisions involving social media
company protections and election security. Britain approved a coronavirus vaccine developed by Oxford
University and AstraZeneca AZN.L in the latest development in
the rapid progression, testing, approval and deployment of drugs
to battle the disease. The Dow Jones Industrial Average .DJI rose 165.7 points,
or 0.55%, to 30,501.37, the S&P 500 .SPX gained 13.87 points,
or 0.37%, to 3,740.91 and the Nasdaq Composite .IXIC added
34.01 points, or 0.26%, to 12,884.23.
European stocks reversed gains and headed slightly lower as
investors took profits in the wake of strong gains.
The pan-European STOXX 600 index .STOXX lost 0.13% and
MSCI's gauge of stocks across the globe .MIWD00000PUS gained
0.49%.
Emerging market stocks rose 1.58%. MSCI's broadest index of
Asia-Pacific shares outside Japan .MIAPJ0000PUS closed 1.67%
higher, while Japan's Nikkei .N225 lost 0.45%.
U.S. Treasury yields were essentially flat on Wednesday
morning in thin trading as investors bet that Republicans were
unlikely to approve the passage of proposed $2000 stimulus
checks.
Benchmark 10-year notes US10YT=RR last fell 1/32 in price
to yield 0.9364%, from 0.935% late on Tuesday.
The 30-year bond US30YT=RR last fell 4/32 in price to
yield 1.679%, from 1.674% late on Tuesday.
The dollar fell the lowest since April 2018 against a basket
of world currencies as investors bet on more fiscal support and
positioned for year-end in light trading volume.
The dollar index .DXY fell 0.41%, with the euro EUR= up
0.36% to $1.2291.
The Japanese yen strengthened 0.42% versus the greenback at
103.15 per dollar, while Sterling GBP= was last trading at
$1.3608, up 0.80% on the day.
Crude oil prices gained ground on the back of the weaker
dollar and a dip in U.S. inventories. U.S. crude CLcv1 rose 1.27% to $48.61 per barrel and Brent
LCOcv1 was last at $51.33, up 0.47% on the day.
Gold gained ground as the safe-haven metal countered a dip
in the greenback.
Spot gold XAU= added 0.3% to $1,884.41 an ounce.

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GRAPHIC-Emerging markets http://tmsnrt.rs/2ihRugV
GRAPHIC-World FX rates http://tmsnrt.rs/2egbfVh
GRAPHIC-MSCI All Country World Index Market Cap http://tmsnrt.rs/2EmTD6j
GRAPHIC-Global assets in 2020 http://tmsnrt.rs/2yaDPgn
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(Editing by Larry King and Nick Zieminski)