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(Updates through midday U.S. trading)
By David Randall
NEW YORK, Dec 1 (Reuters) - Stock markets rose and safe
havens such as U.S. Treasury bonds dipped Tuesday as
better-than-expected factory data and signs that the first
coronavirus vaccinations could be administered by the end of the
year helped prolong a worldwide rally in risk assets despite an
acceleration of the pandemic.
Bets on more easing from the U.S. Federal Reserve to help
the economy through the winter weighed on the dollar as riskier
currencies rose, while crude prices struggled to join the bounce
after oil-producing countries delayed a decision on output cuts.
Pfizer Inc on Tuesday said it had asked for
emergency European Union authorization of its vaccine, taking it
closer to launch following a similar move in the United States
last month.
Moderna Inc applied for U.S. authorization on
Monday after full results from a late-stage study showed it was
94.1% effective with no serious safety concerns.
"We believe the rally can continue, with the current
pipeline of expected vaccine rollouts, in line with our central
scenario of widespread availability in the second quarter of
2021," said Mark Haefele, chief investment officer at UBS Global
Wealth Management in Zurich.
MSCI's gauge of stocks across the globe
gained 1.23% following broad gains in Europe and Asia, with
Japan's Nikkei closing near a 29-1/2-year high.
China's blue-chip CSI300 index rose 2.2% after a
business survey showed activity in China's factory sector
accelerated at the fastest pace in a decade in November.
In the UK, factories recorded their fastest growth
in almost three years last month, a survey showed on Tuesday.
In midday trading on Wall Street, the Dow Jones Industrial
Average rose 309.61 points, or 1.04%, to 29,948.25, the
S&P 500 gained 48.2 points, or 1.33%, to 3,669.83, and
the Nasdaq Composite added 149.46 points, or 1.23%, to
12,348.19.
Breakthroughs in vaccine developments from Pfizer, Moderna
and AstraZeneca in November along with a market-friendly
outcome of the U.S. presidential election helped the MSCI world
stock index score its best month on record in November, up 12%
to new all-time peaks.
Coronavirus cases have touched multimonth highs in South
Korea, Hong Kong and Europe over the last week, while the United
States posted a record 4.2 million new cases in November.
"What we are seeing today is that upward trend reasserting
itself, given the positive news on the vaccine front, China's
growth picking up, and the tremendous faith in the ability of
central banks to keep the markets afloat," said Stephen Miller,
market strategist for GSFM Funds Management.
In foreign exchange markets, the dollar was under pressure
after closing out its worst month since July on Monday with a
little bounce, and as investors reckon on even more U.S.
monetary easing.
In a speech released late on Monday, Fed Chair Jerome Powell
said a slowing recovery and a surging pandemic meant the United
States was entering a "challenging" few months, with the
potential deployment of a vaccine still facing hurdles.
Bitcoin was volatile, falling as much as 6% after
hitting a record high earlier in the day.
Benchmark U.S. 10-year notes last fell 23/32 in
price to yield 0.9178%, from 0.842% late on Monday, as the U.S.
Congress began a two-week sprint to secure funding and avoid a
possible government shutdown amid the coronavirus pandemic.
Oil prices were volatile after leading producers delayed
talks on 2021 output policy, while the coronavirus pandemic
continued to sap fuel demand.
U.S. crude fell 1.32% to $44.74 per barrel and Brent
was at $47.50, down 0.79% on the day.
(Reporting by David Randall
Editing by Nick Zieminski and Jonathan Oatis)
