Dow stays near record high, European shares end mixed

By Stephanie Kelly

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.

Although the German, French, Italian and Spanish indexes all rose, the pan-European STOXX 600 <.STOXX> 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 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 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 , 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 , 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 > 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 > 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 > 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 > dropped 0.4 percent to $1,276.63 an ounce, remaining near a two-week low.

U.S. crude rose 1.1 percent to $52.47 per barrel and Brent 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)