* Euro holds gains after 1.5-percent jump on Monday
* Italian bond yields back below pre-vote levels
* Oil sees first fall in five sessions
* Gold bounces off 10-month low
* Global stocks nudge higher
By Marc Jones
LONDON, Dec 6 The euro held firm on Tuesday,
having seen a wild 3-cent swing in the wake of Italy's
referendum, while the region's bond yields dipped in line with
U.S. peers as oil saw its first fall for five days.
Asian stocks saw their strongest day for 2 weeks overnight
after Wall Street's Dow Jones index hit a record high,
and Europe's main bourses struggled into positive territory as
bumper German data helped settle an early wobble.
Italy remained in focus with sources telling Reuters that
precautionary state aid had been prepared for Banca Monte dei
Paschi di Siena and as a crucial European
Central Bank meeting on Thursday loomed.
Italian bond yields were back below levels seen before
Sunday's referendum defeat for the government, while
the euro held at $1.0767 having bounced strongly from as
low as $1.0505 on Monday.
"The referendum result could put the ECB under pressure not
to taper the asset purchase programme but to extend it for six
months beyond March (in its current form)," ING strategist
Benjamin Schroeder said.
Shares meanwhile rose on news that German industrial orders
rose at their fastest pace for more than two years, stoking
hopes that Europe's largest economy is set for an acceleration
in the coming months.
Factories saw demand climb 4.9 percent on the month despite
bulk orders being lower than usual, the German economy ministry
said. That was the biggest increase since July 2014 and far
above the Reuters consensus forecast for a 0.6 percent rise.
"The reading was very strong even without large-scale orders
and that suggests it's more than just a flash in the pan,"
BayernLB economist Stefan Kipar said, noting that some firms
might have brought orders forward.
OIL, TALKING TURKEY
Oil prices snapped a four-day winning streak as data showed
crude output rose in virtually every major export region and as
it emerged that Saudi Arabia's Saudi Aramco would cut its prices
to big Asian customers next month.
It jarred with last week's first OPEC agreement since 2008
to cut output and sent Brent oil futures down 20 cents
to $54.75 a barrel and U.S. crude down to $51.45.
Freight Investor Services International fuel broker, Matt
Stanley, said the oil market was trying to find "some kind of
level it is happy settling at".
"I have a feeling it is more towards the $50 per barrel
range than $55 per barrel, not least because there is still
ambiguity around production levels."
In emerging markets, Turkey, where the lira has
slumped to record lows in recent weeks, saw a warning from the
head of the central bank that the weakness could cause the bank
to miss its inflation targets early next year.
In Asia, gold nudged off a 10-month low. MSCI's
broadest index for the region bounced 0.7
percent, its biggest daily rise since Nov. 22, as Korea
climbed 1.4 percent and Japan rose 0.4 percent.
Financial shares in China weakened again, however, after the
country's insurance regulator suspended an unlisted firm from
selling some products a day after a warning about "barbaric"
share acquisitions by asset managers.
Elsewhere, the Australian dollar dipped about a
quarter of a percent after its central bank struck a cautious
note on the economy as it kept interest rates on hold.
Other major currency pairs were mostly trading in tight
ranges after Monday's rollercoaster for the euro.
The U.S. dollar was near a three-week low as
investors waited for what is widely expected to be a rise in
U.S. interest rates next month.
"We are on the cusp of a period of rising interest rates,"
Chicago Federal Reserve President Charles Evans told reporters
after a speech in Chicago on Monday.
(Additional reporting by Abhinav Ramnarayan in London; Editing
by Louise Ireland)