NEW YORK, Nov 30 (Reuters) - World stock markets dipped on
Monday to close a record-breaking month as the prospect of a
vaccine-driven economic recovery next year and further stimulus
measures by central banks eclipsed immediate concerns about the
spiking coronavirus pandemic.
November's record 13% leap has added $6.7 trillion - or $155
million a minute - to the value of world equities.
At the same time, oil, industrial commodities and other risk
assets have surged, with emerging-market currencies posting
their largest gains in almost two years, while
safe-havens such as the dollar and gold slipped.
"It has been a very, very strong month for markets,
especially on the equity side but also on the fixed income side
too," said Rabobank's head of macro strategy, Elwin de Groot.
The positive developments on vaccines and the swiftness with
which they are likely to be rolled out have been key drivers.
"And this market still remains very much supported by
liquidity from the central banks," De Groot said. With the
European Central Bank set to provide more stimulus next month,
"the market view seems to be, what can possibly go wrong?"
MSCI's gauge of stocks across the globe shed
0.39% following modest declines in Asia and mixed trading in
Europe. Many European markets are boasting their best month
ever, with France up 21% and Italy almost 26%. The Nikkei's 15%
leap in Japan was its best month since 1994.
On Wall Street, the Dow Jones Industrial Average fell
190.36 points, or 0.64%, to 29,720.01, the S&P 500 lost
6.4 points, or 0.18%, to 3,631.95 and the Nasdaq Composite
added 29.91 points, or 0.25%, to 12,235.76.
The surge in stocks has put competitive pressure on
safe-haven bonds, but much of that has been cushioned by
expectations of more asset buying by central banks.
U.S. benchmark 10-year notes last fell 2/32 in
price to yield 0.8471%, from 0.842% late on Friday.
"Markets are overbought and at risk of a short-term pause,"
said Shane Oliver, head of investment strategy at AMP Capital.
"However, we are now in a seasonally strong time of year and
investors are yet to fully discount the potential for a very
strong recovery next year in growth and profits as stimulus
combines with vaccines."
Helping sentiment further on Monday was a survey showing
that factory activity in China beat forecasts in November, and
the country's central bank surprised with an extra helping of
Moderna provided the regular Monday dose of vaccine news,
saying it was applying for emergency-use authorization from the
U.S. Food and Drug Administration and conditional approval from
the European Union.
Federal Reserve Chair Jerome Powell testifies to Congress on
Tuesday amid speculation of further policy action at its next
meeting in mid-December.
Against a basket of currencies, the dollar index was pinned
at 91.704 after shedding 2.4% for the month to lows last
seen in mid-2018.
One major casualty of the rush to risk has been gold, which
was near a five-month trough at $1,769 an ounce, having
shed 5.6% in November.
Oil, in contrast, has benefited nearly 30% from the prospect
of a revival in demand should vaccines allow travel and
transport to resume next year.
Some profit-taking set in early on Monday ahead of an OPEC+
meeting to decide whether the producers' group will extend large
U.S. crude recently fell 0.51% to $45.30 per barrel
and Brent was at $47.84, down 0.71% on the day.
(Reporting by David Randall; editing by Jonathan Oatis)