* Highly anticipated vaccine facing more scrutiny
* Equity markets ready for record highs
* U.S. markets on shortened hours after Thanksgiving holiday
* Graphic: 2020 asset performance http://tmsnrt.rs/2yaDPgn
* Graphic: World FX rates in 2020 http://tmsnrt.rs/2egbfVh
By Marc Jones
LONDON, Nov 27 (Reuters) - World stocks remained on course
for their best month ever on Friday as recent vaccine progress,
Joe Biden's U.S. presidential election win, hopes for further
stimulus, a commodity surge and descending dollar all lifted the
spirits.
European markets felt a touch of caution as questions
emerged over trial data on AstraZeneca's COVID-19 vaccine
and Poland threatened to veto the new EU budget
, but that wasn't enough to derail November's gains
.
German, French, Italian and Spanish stocks all gained
and government bond yields stayed low after the
European Central Bank reinforced expectations of further
stimulus next month and Sweden's Riksbank made a surprise
increase to its quantitative-easing programme.
London's FTSE was lower all morning amid some
last-minute Brexit nerves, but with Wall Street
pointing to a post-Thanksgiving rise, MSCI's main world index
was readying for another record high.
"Risk sentiment is in reasonable nick because we've got
vaccines and easy money," said Societe Generale strategist Kit
Juckes. "That is the underpinning of optimism."
It wasn't all good news. Australian shares ended
down 0.5% -- Treasury Wine Estates was whacked 11.25%
as China imposed new tariffs on Australian wine, the latest move
in the countries' long-running trade row.
Chinese shares still rose 0.1% after data there
showed industrial profits surged at the fastest pace since early
2017. South Korean stocks and Japan's Nikkei
both rose 0.3%.
British drugmaker AstraZeneca's coronavirus drug was
touted as a "vaccine for the world" due to its low cost, but the
efficacy of the vaccine is now facing more scrutiny, which
experts say could delay its approval.
Several scientists have raised doubts about the robustness
of results showing the shot was 90% effective in a sub-group of
trial participants who, by error initially, received a half dose
followed by a full dose.
"With global (coronavirus) case numbers having now topped 60
million ... there is certainly some rough terrain ahead for the
global recovery, and that can create economic scarring,"
analysts at ANZ Bank wrote in a memo.
On Brexit, the European Union and Britain said substantial
differences remained over a Brexit trade deal, as the EU chief
negotiator prepared to travel to London in a last-ditch attempt
to avoid a tumultuous finale to the five-year crisis.
Sterling, which has climbed 4% against the dollar this month
and the same against the euro since September, trimmed 0.3%
against both to sit at $1.3329 and 89.50 pence
pre euro.
"Clearly, there are substantial and important differences
still to be bridged, but we're getting on with it," British
Prime Minister Boris Johnson told reporters. EU chief negotiator
Michel Barnier tweeted "Same significant divergences persist".
VIRUS VS VACCINE
U.S. stock index futures edged higher as optimism around an
economic rebound next year outweighed concern over an expected
surge in coronavirus infections during the Thanksgiving holiday.
U.S. hospitalizations for COVID-19 are at a record and
experts warn that gatherings could lead to further infections
and deaths.
More than 20 million people across England will be forced to
live under the toughest restrictions even after a national
lockdown ends on Dec. 2. Partial lockdowns in some European
countries have also raised concern about economic growth.
The European Central Bank's chief economist highlighted
these concerns, saying there were "some worrying signals" in
financing conditions in Europe for small and medium-sized
enterprises, which pushed European bond yields lower.
German 10-year Bund yields traded near two-week lows on
Friday, while Portugal's 10-year government bond yields touched
zero for the first time.
The euro, which last bought $1.1924, showed little
reaction because currency traders have largely priced in
expectations for additional ECB easing next month.
The dollar, which has fallen more than 2.2% so far
this month as global sentiment has surged, lessening demand for
the safe-haven currency, was near its lowest in nearly three
months.
"Surely euro-dollar can't break through $1.20 without good
news on the (Brexit) trade deal," Societe Generale's Juckes
said.
The yield on benchmark 10-year Treasury notes
fell to 0.8586% as some investors sought the safety of holding
government debt.
In commodity markets, copper, a gauge of global economic
sentiment because of its use in infrastructure, hit a near
seven-and-a-month high. Oil, though up nearly 30% this month,
dipped overnight on oversupply concerns, but Brent recovered in
London to rise to $48 per barrel.
Bitcoin, the world's biggest cryptocurrency,
steadied at $17,060 after tumbling 8.4% in the previous session,
having failed to take out its record high of $19,666.
The cryptocurrency showed little reaction to a report in the
Financial Times that Facebook will introduce its own
Libra digital currency in limited format next year.
Bitcoin has rallied around 140% this year, fuelled by demand
for riskier assets.
(Additional reporting by Stanley White in Tokyo; editing by Jan
Harvey, Larry KingS)
Astrazeneca (AZN)
