October 24, 2017 / 12:29 PM / a month ago

Dow stays near record high, European shares end mixed

NEW YORK (Reuters) - European shares ended mixed at their close on Tuesday in anticipation of this week’s European Central Bank meeting, while the Dow Jones Industrial Average remained near record highs, buoyed by a surge in industrial sector shares.

Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., October 20, 2017. REUTERS/Brendan McDermid

Although the German, French, Italian and Spanish indexes all rose, the pan-European STOXX 600 closed down 0.4 percent.

“The market is anticipating that the ECB highlights some kind of inclination towards lower for longer, and that’s supportive for equities,” said Pierre Bose, head of European equity strategy at Credit Suisse. “If they were a bit more hawkish that could take a bit of the steam out of the rally we’ve seen.”

The pan-European FTSEurofirst 300 index .FTEU3 lost 0.30 percent and MSCI's gauge of stocks across the globe .MIWD00000PUS gained 0.04 percent.

Apple supplier and chipmaker AMS (AMS.S) jumped 21.8 percent after reporting third-quarter sales just under expectations. Analysts said strong fourth-quarter guidance from the iPhone supplier offset the miss.

Strong profits from Spain's Caixabank (CABK.MC) also lifted the IBEX .IBEX 0.4 percent after its Catalonia-related underperformance.

Earnings were top-of-mind in U.S. trading, raising the Dow Jones Industrial Average .DJI 192.26 points, or 0.83 percent, to 23,466.22.

The world’s largest construction and mining equipment maker, Caterpillar Inc (CAT.N), beat third-quarter profit and sales estimates and raised its full-year forecasts. The Peoria, Illinois company expects revenue in its construction business to surge about 20 percent and its mining business to jump 30 percent. The company’s stock was up 4.6 percent.

3M (MMM.N), another Dow component, which makes a range of products from autoparts to office supplies, reported upbeat results, helping its stock gain 7.2 percent.

Earnings have gotten off to a strong start, with 73 percent of 120 S&P companies beating profit expectations as of Tuesday.

The S&P 500 .SPX gained 5.29 points, or 0.21 percent, to 2,570.27 and the Nasdaq Composite .IXIC added 21.12 points, or 0.32 percent, to 6,607.95.

U.S. 10-year Treasury yields remained close to a more than five-month peak. Benchmark 10-year notes US10YT=RR last fell 9/32 in price to yield 2.4063 percent, from 2.375 percent late on Monday.

The 30-year U.S. Treasury bond US30YT=RR last fell 21/32 in price to yield 2.9234 percent, from 2.89 percent late on Monday.

Japan's Nikkei .N225 had extended its 16-day winning streak to a 21-year peak overnight following the weekend election win for Prime Minister Shinzo Abe.

The New Zealand dollar NZD= hit a five-month low after the incoming Labour-led coalition government said it plans to review and reform the Central Bank Act to include employment, alongside inflation, as a dual target.

The dollar index .DXY rose 0.05 percent as the wait continued for President Donald Trump to name the next head of the U.S. central bank after he said on Monday a decision was “very, very close.” Hopes for the passage of a tax cut plan also buoyed the greenback.

Spot gold XAU= dropped 0.4 percent to $1,276.63 an ounce, remaining near a two-week low.

U.S. crude CLcv1 rose 1.1 percent to $52.47 per barrel and Brent LCOcv1 was last at $58.30, up 1.62 percent.

Reporting by Stephanie Kelly; Additional reporting by Julien Ponthus, Helen Reidin and Marc Jones in London, Sruthi Shankar in Bengaluru and Gertrude Chavez-Dreyfuss in New York; Editing by Daniel Bases and James Dalgleish

Our Standards:The Thomson Reuters Trust Principles.
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