GLOBAL MARKETS-World shares hover near 6-year high, euro gains

    * MSCI world share index holds at 6-year high 
    * Japanese stocks on track for best year since 1972 
    * Euro near 5-year high vs yen, two-year high vs dollar 
    * U.S. benchmark yields slip below 3 percent 
 
 (Updates market action, adds quotes, changes dateline from 
LONDON) 
    By Richard Leong and Marc Jones 
    NEW YORK/LONDON, Dec 30 (Reuters) - World stocks hovered 
near a six-year high on Monday, putting the finishing touches to 
a bumper year, as the euro strengthened against the dollar and 
yen on comments from European Central Bank chief Mario Draghi. 
    U.S. benchmark yields slipped below the 3 percent threshold 
after they hit a two-year high last week on expectations of 
improving domestic growth as the Federal Reserve begins to pare 
its massive bond-purchase stimulus in January. 
    Optimism about the global economy further reduced the appeal 
of gold, which will record its biggest annual loss in 32 years. 
    Oil prices fell below $112 a barrel in London on signs crude 
exports from Libya might return to normal due to a possible end 
to a four-month blockage of a key port.    
    MSCI's all-country world equity index    edged 
up 0.06 percent to 407.06, its highest level since late 2007. It 
was poised to gain 9.8 percent for the year, following a 13.4 
percent rise in 2012.  
    Wall Street opened little changed on the heels of the 
biggest two-year gains for the Standard & Poor's 500 index in 
five months. The S&P was on track to book a 29.1 percent annual 
rise this year, its biggest since 1997.  .N  
    "This market was one that performed better than all 
expectations and did that despite an improving yet sluggish 
economy," said Andre Bakhos, managing director at Janlyn Capital 
LLC in Bernardsville, New Jersey. 
    The Dow Jones industrial average    was up 5.17 points, 
or 0.03 percent, at 16,483.58. The Standard & Poor's 500 Index 
   was down 1.97 points, or 0.11 percent, at 1,839.43. The 
Nasdaq Composite Index    was down 9.66 points, or 0.23 
percent, at 4,146.93.  
    After years in which financial markets lurched from the debt 
crisis in Europe to U.S. political deadlock, investors are 
generally becoming more upbeat on the global economic outlook.   
  
    In Europe, most European stock indexes fell but stayed on 
track to post their biggest annual gains in four years on 
support from the ECB and a strengthening economic recovery. 
    The FTSEurofirst 300    index of top European shares 
was down 0.3 percent at 1,310.14 but still set to post a gain of 
16 percent for the year, its best annual performance since 2009. 
     
    Japanese shares    ended 2013 with a flourish, up 0.7 
percent - 56.7 percent for the year. Tokyo's Nikkei index has 
posted its strongest run-up since 1972 as aggressive government 
and central bank policies have driven the plunge of its currency 
in an effort to help exporters and stimulate domestic demand. 
    "This year has seen the renaissance of equities as the 
financial crisis ended. Next year should see the end of the 
economic crisis, and it should bring more opportunities for 
stock investors," said David Thebault, head of quantitative 
sales trading at Global Equities in Paris.  .EU      
    Thin year-end conditions made for more lively moves in the 
currency market. 
    The euro    last traded up 0.4 percent to $1.3804, short 
of $1.3892 set on Friday - which was the highest since October 
2011. The single European currency also strengthened against the 
yen   , rising 0.4 percent to 145.08 yen after hitting a 
five-year peak of 145.675 yen on Friday.  FRX/  
    Comments by European Central Bank President Mario Draghi in 
Germany's Der Spiegel that he saw no urgent need to cut interest 
rates again and no signs of deflation supported the euro. 
 TOP/CEN     
    "At the moment we see no need for immediate action. We don't 
have Japanese conditions," he said. (http://www.ecb.europa.eu/press/key/date/2013/html/sp131230.en.html) 
     
    U.S. YIELDS FALL 
    Yields on the U.S. benchmark 10-year Treasury note declined  
to 2.98 percent early Monday after climbing to their highest in 
more than two years at 3.02 percent    last week. 
    Federal borrowing costs had risen in reaction to the U.S. 
central bank's decision earlier this month to dial back its bond 
purchases next week by $10 billion a month to $75 billion. 
    Fed Reserve officials have expressed cautious optimism of 
improving domestic growth in 2014, helped by other major 
economies showing signs of improvement.  
    Global growth hopes lifted copper    and aluminum 
   to four- and two-month highs. Aluminum clung to a 0.8 
percent rise but copper give up its earlier gains, last down 
0.03 percent.  
    Safe-haven gold    fell 0.6 percent to $1,205.80 an 
ounce as the precious metal trudged toward its biggest annual 
loss in over three decades.  GOL/  
    In the oil market, Brent crude    fell 88 cents or 0.8 
percent at $111.30 a barrel, while U.S. oil futures    shed 
56 cents or 0.6 percent at $99.76.  O/R  
 
 (Additional reporting by Chuck Mikolajczak in New York,; Blaise 
Robinson in London and; Wayne Cole in Sydney; Editing by 
Catherine Evans and Dan Grebler) 
 ((richard.leong@thomsonreuters.com)(+1 646 303 6313)(Reuters 
Messaging: 
richard.leong.thomsonreuters.com@thomsonreuters.net)(Twitter 
@RichardLeong2)) 
  
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Keywords: MARKETS GLOBAL/