Euro hits fresh lows, Asia shares at highs on ECB buzz
By Wayne Cole
SYDNEY (Reuters) – The euro was cracking under pressure on Wednesday as feverish speculation of further policy stimulus in the euro zone drove bond yields to all-time lows and lifted Asian stocks to peaks not seen in almost seven years.
He said that euro zone inflation data due on Friday was likely to show a new low for this cycle of just 0.3 percent and add to the sense of urgency on policy.
"This will continue to depress swap rates across the curve and keep the euro heavy."
The euro's weakness helped lift the U.S. dollar index through its September peak to reach its highest in 13 months at 82.698. The greenback could only manage a minor gain on the yen to 104.07, short of Monday's 7-month peak at 104.49.
On Wall Street the S&P 500 had ended Tuesday above the 2,000 mark for the first time, adding 0.11 percent. The Dow firmed 0.17 percent and the Nasdaq 0.29 percent.
EURO YIELDS NOSEDIVE
Durable goods orders jumped a massive 22.6 percent thanks entirely to bumper demand for Boeing aircraft, while upward revisions to past data suggested business investment was stronger than first thought.
In commodities, gold was hovering at $1,283.60 an ounce after failing to sustain a bounce to $1,290.80.
Oil prices were steadier for the moment after their long decline. Brent crude inched up 24 cents to $102.74 a barrel, while U.S. crude rose 4 cents to $93.90.