European yields climb ahead of ECB, NZ$ hits five-month low

Frankfurt (Oct 24)  European stocks dipped and bond yields drifted higher on Tuesday, as data from the euro zone's top economies bolstered the case for the European Central Bank to signal a sizeable cut this week to its stimulus measures.

The latest round of global activity surveys showed German businesses enjoying their strongest jump in new orders in 6-1/2 years, banks seeing stronger credit demand and France's rebound firmly intact. Minor misses to some of the headline forecasts kept enthusiasm in check but were not enough to stop benchmark German 10-year bond yields climbing to their highest in almost two weeks. The pan-European STOXX 600 index was broadly flat meanwhile, with London's FTSE 100 retreating 0.1 percent and Paris's CAC 40 and Germany's DAX up 0.1-0.2 percent.

Apple supplier AMS saw a spectacular 15 percent jump after it pointed to strong demand ahead of the iPhone X release. Strong profits from Spain's Caixabank also lifted the IBEX after its Catalonia-related underperformance with a 2.3 percent rise. Asia had cheered a record-breaking 16th straight gain for Japan's Nikkei index overnight.

That kept MSCI's 47-country world share index near its recent all-time highs after a drop in General Electric shares on Wall Street had seen the ViX volatility index spike up.

Major currencies mainly kept to narrow ranges. The dollar edged down from recent highs as the wait continued for Thursday's ECB meeting and for Donald Trump to name the next head of the U.S. central bank after he said on Monday a decision was "very, very close".

New Zealand's dollar stumbled to a five-month low as the incoming Labour coalition's policies unsettled investors. Prime Minister-designate Jacinda Ardern's tough stance on foreign investment in housing and on immigration could prove negative for the currency , given the country runs a current account deficit. In addition, Ardern said on Tuesday

Reuters