* European, U.S. stocks in positive territory
* FTSE hits fresh record high
* Sterling outlook still shaky
* Mexican peso hits record low
* Dollar falls vs yen on caution ahead of Trump press
(Updates prices, adds comment)
By Gertrude Chavez-Dreyfuss
NEW YORK, Jan 10 Stocks rose worldwide on
Tuesday supported by a rally in commodities such as copper and
silver, while the dollar fell against the yen on investor
caution ahead of a news conference by U.S. President-elect
Donald Trump on Wednesday.
European stock markets, which had opened broadly lower
, ended the day on a firmer note, while Wall Street
shares traded higher, with the Nasdaq Composite hitting an
intra-day record peak.
Commodities such as copper gained on further signs of a
pick-up in China's economy. Oil prices were lower on the day but
were off their weakest levels of the previous session when they
fell nearly 4 percent.
In the United States, the Dow Jones industrial average
rose 0.2 percent to 19,917.12, while the S&P 500
was up 0.3 percent at 2,275.83. Nasdaq gained 0.5
percent to 5,558.40.
"Significant fiscal stimulus is being discussed when the
U.S. economy is already healthy," said Richard Bernstein, chief
investment officer at Richard Bernstein Advisors (RBA) in New
York. RBA oversees about $3 billion in assets.
"On paper, this would imply stronger stock markets, stronger
commodity markets, and weaker bond markets," he added.
U.S. stocks have risen in anticipation of easier fiscal
policy based on Trump's campaign promises of increased
infrastructure spending and tax cuts.
European stocks were also higher, with Europe's broad
FTSEurofirst 300 index adding 0.1 percent at 1,439.26.
Earlier the index hit a record high.
The dollar, meanwhile, slid 0.2 percent to 115.84 yen
Uncertainty ahead of Trump's comments on Wednesday dampened
demand for the dollar. Analysts also said traders were watching
hearings for his choices for senior administration posts, which
started on Tuesday with U.S. Senator Jeff Sessions, picked for
The Trump factor also pressured the Mexican peso,
which hit a record low against the dollar. The greenback was
last up 1.3 percent at 21.655 pesos.
Sterling, meanwhile, hit a fresh 10-week low against the
dollar earlier in the session but recovered in New York. It was
last little changed at $1.2153.
The outlook for the pound remained shaky, especially after
weekend comments by Prime Minister Theresa May saying she was
not interested in Britain keeping "bits" of its EU membership.
A revival in worries that Britain could be headed for a
"hard Brexit", in which it chooses to take full control of
immigration and give up access to the euro zone single market,
reverberated across financial markets, lifting demand for
safe-haven assets such as German government bonds
and gold. Gold rose to its highest in more than a month.
Oil prices continued their decline, with Brent crude
down 1.8 percent at $53.95 a barrel. U.S. crude also fell
1.6 percent, to $51.13.
EYES ON TRUMP
With little major U.S. data on the calendar, attention
turned to Trump's news conference on Wednesday, his first since
winning the election.
"Cautiousness ahead of the news conference is turning into a
bit of optimism, if you look at how Trump's tweets are playing
out in the market," said Naeem Aslam, chief market analyst at
Think Markets UK.
Yields in the U.S. Treasury market were higher at 2.381
percent, with the benchmark 10-year note down 1/32
In Asia, MSCI's broadest index of Asia-Pacific shares
outside Japan rose 0.6 percent, to 441.02.
Japan's benchmark Nikkei average closed down 0.8 percent
at 19,301.44, while the broader Topix shed 0.7 percent
(Reporting by Gertrude Chavez-Dreyfuss; Additional reporting by
Dhara Ranasinghe in London and Sam Forgione in New York; Editing
by James Dalgleish)