* European stocks close in on August record highs
* Nikkei at 5-month top, Asia-ex Japan highest in 6 weeks
* Chance of Fed tapering delay, Japan and China stimulus
* Dollar on defensive, activity curbed by U.S. holiday
* Aluminium prices hit over decade high after Guinea unrest
* Oil stabilises after earlier falling as Saudis cut prices
LONDON, Sept 6 (Reuters) - Global shares posted their
longest winning streak in three months on Monday, aided by hopes
U.S. interest rates would stay low for longer and talk of more
stimulus in Japan and China.
A holiday in the United States made for thin trading
conditions, but MSCI's all-country world index
gained 0.3%, touching a new record level and on course for its
seventh consecutive closing high.
In Europe the STOXX index of 600 European companies
was 0.8% higher, inching closer to August's record peaks.
Shares in Norsk Hydro rose as much 5% to a more
than 13-year peak and Rusal jumped more than 4% to its
highest on record after aluminium prices hit a more than 10-year
high as a coup in Guinea raised supply concerns. No producers
reported being affected, however.
Three-month aluminium on the London Metal Exchange
rose as much as 1.8% to $2,775.50 a tonne, its highest since May
Guinean bauxite for delivery to China was last assessed by
Asian Metal <AM-45GUI-BAUX> at $50.50 a tonne, up 1% from Friday
and the highest since March 16, 2020.
The coup added to the bullish market mood, primarily fuelled
by supply concerns around carbon neutrality pledges from China
and the European Union, said Carsten Menke, head of next
generation research at Julius Baer.
"We are convinced that the current impact of carbon
neutrality on aluminium is overstated and that prices are
detached from fundamentals," said Menke. "That said, short-term
price risks remain skewed to the upside."
In Asia, MSCI's broadest index of Asia-Pacific shares
outside Japan rose about 0.6% overnight to the
highest since late July.
Japan's Nikkei gained 1.8% to a five-month top,
extending a rally on hopes a new prime minister there would
bring added fiscal spending.
Hopes of fresh stimulus from Beijing through fiscal and
monetary policy lifted Chinese blue chips 1.9%.
Nasdaq futures inched up 0.4%, while S&P 500 futures
were up 0.3%.
Investors were still assessing the fallout from the
September payrolls report, which showed a much smaller increase
in jobs than expected, but also a pick-up in wages.
The latter was enough to nudge longer-dated Treasury yields
higher and steepen the yield curve, even as markets speculated
over whether the Federal Reserve might not start tapering until
later than previously thought.
"Employment decelerated sharply in August, with little
indication of a pickup in labour supply," said Barclays
economist Jonathan Millar.
"This puts the Fed in a quandary as it balances risks of a
sharp demand slowdown against those of tight supply and
"We still expect the Fed to signal tapering in September,
but now expect it to begin in December, not November. QE will
likely end by the middle of 2022."
The rise in U.S. 10-year yields to 1.33% limited
some of the pressure on the dollar from the poor payrolls print,
though its index still touched a one-month low before steadying
The dollar was changing hands versus the yen at 109.85
, while the euro stood at $1.1866 after hitting a
five-week top of $1.1908 on Friday.
The European Central Bank holds its policy meeting this week
and a number of policy hawks have been calling for a step back
in the bank's huge asset-buying programme, though President
Christine Lagarde has sounded more dovish.
Euro zone sovereign bond yields was little moved Monday,
with Germany's benchmark 10-year Bund yield steady
"We expect the ECB to announce a reduced pace of Q4 PEPP
(pandemic emergency purchase programme) at its September meeting
on the back of easier financial conditions," said analysts at TD
"All other policy levers are likely to be left on hold, with
inflation forecasts revised sharply up this year and next.
Communication risks are high, and Lagarde will want to avoid
sounding overly hawkish, instead emphasising 'persistence'."
The prospect of a later start to Fed tapering proved only
fleetingly positive for non-yielding gold, which stood at $1,821
an ounce, having reached its highest since mid-June at
Oil prices stabilised after sharp falls following Saudi
Arabia's slashing of prices of all crude grades to Asian
customers, while leaving prices to northwestern Europe and the
United States steady.
Brent edged up 0.1% to $72.70 a barrel, while U.S.
crude was flat at $69.32.
(Reporting by Tom Arnold in London and Wayne Cole in Sydney;
Editing by Sam Holmes, Jan Harvey; Editing by Toby Chopra)