* Dow, Nasdaq hit record highs
* Dollar climbs after Yellen's upbeat U.S. labor market
* European shares steady after attacks in Germany, Turkey
* Yen slides, Nikkei rises as BOJ maintains loose policy
(Updates to afternoon U.S. trading, adds data)
By Dion Rabouin
NEW YORK, Dec 20 U.S. equities touched record
highs on Tuesday and the dollar hit a fresh 14-year peak as
markets shrugged off risk aversion following attacks in Turkey
On Wall Street the Dow and Nasdaq reached
record intraday highs, with the blue-chip index nearing the
20,000 level. European stocks steadied as reassurance over
Italy's plan to spend up to 20 billion euros ($21 billion) to
rescue its troubled banks overtook uncertainty over the
"Investors have become so fast in digesting bad news, and
this explains the resilience in financial markets," said Hussein
Sayed, chief market strategist at FXTM.
U.S. stocks have rallied since the Nov. 8 election, with the
S&P 500 rising nearly 6 percent on bets that President-elect
Donald Trump's plans for deregulation and infrastructure
spending will give a boost to business.
The Dow Jones industrial average rose 95.24 points,
or 0.48 percent, to 19,978.3, the S&P 500 gained 7.88
points, or 0.35 percent, to 2,270.41 and the Nasdaq Composite
added 24.41 points, or 0.45 percent, to 5,481.85.
The pan-European STOXX 600 closed up 0.48 percent, with the
German DAX, French CAC 40 and British FTSE 100
all adding gains. Emerging market shares edged up
while MSCI's broadest index of Asia-Pacific shares
outside Japan fell 0.3 percent.
China's CSI 300 index slid 0.6 percent on
Beijing's move to tighten supervision of shadow banking
activities and on liquidity concerns, and Japan's Nikkei
closed up 0.5 percent after a late rally linked to the Bank of
Japan's decision to maintain to its -0.1 percent interest rate
on some deposits and ultra-loose monetary policy.
The BOJ's widely expected hold also sent the yen tumbling
against the dollar. The yen was last down 0.6 percent against
The dollar tracked U.S. bond yields higher
, as the strong appetite for risk assets pushed
traders out of bonds and into stocks. Positive comments on
Monday from Federal Reserve Chair Janet Yellen on the state of
the U.S. labor market also boosted the greenback.
"She didn't use the opportunity to take the market back from
being overly hawkish," said UBS currency strategist Constantin
Bolz, in Zurich. "Maybe there were some people who ... thought
they would hold off from further dollar longs until she spoke,
in case she were to row back."
The dollar index, which measures the greenback against a
basket of currencies, rose almost half a percent to 103.65
, its highest level since December 2002.
Benchmark 10-year U.S government bond yields, which set the
bar for global borrowing costs, hit session highs of 2.59
percent, not far from two-year highs touched last week.
"The dollar and bonds have been trading in lockstep," said
Ellis Phifer, senior market strategist at Raymond James in
Memphis, Tennessee. "There are still concerns spending will
increase and more debt supply will be on its way."
The greenback has risen 12 percent versus the yen since
Trump's surprise victory. The win was made official on Monday
after Trump surpassed the required 270 Electoral College votes.
Oil prices hit one-week highs on anticipation of a decline
in U.S. crude stocks. Brent crude was last up 0.7
percent at $55.32 a barrel while WTI crude added 0.36
percent to $52.31 a barrel.
(Reporting by Dion Rabouin; Additional reporting by Richard
Leong in New York, Nichola Saminather in Singapore, Tanya
Agrawal in Bangalore, Marc Jones in London; Editing by Meredith