* European shares edge high as ECB momentum continues
* Dollar index edges up on higher yields
* U.S. 10-yr note yield hits 1-month high
(Updates prices, changes comments, byline, dateline from
By Rodrigo Campos
NEW YORK, June 10 A worldwide measure of stocks
dipped on Tuesday but was within reach of its record high, while
U.S. Treasury yields touched one month highs and the euro
slipped as a whiff of higher U.S. interest rates takes hold in
Stocks on Wall Street opened slightly lower a day after the
S&P 500 closed at a record for a fourth straight session and
world shares drifted near their record set in
"Most valuation metrics suggest that equities are no longer
cheap, though they're not exactly overpriced where they are now.
People are looking for reasons to really buy, but we're
optimistic that equities can continue to push higher," said
David Carter, chief investment officer at Lenox Wealth Advisors
in New York.
The Dow Jones industrial average fell 18.37 points or
0.11 percent, to 16,924.73, the S&P 500 lost 2.38 points
or 0.12 percent, to 1,948.89 and the Nasdaq Composite
dropped 4.41 points or 0.1 percent, to 4,331.83.
The pan-European FTSEurofirst 300 index edged up
0.1 percent to extend its high going back to January 2008.
Chinese, Indonesian and Korean shares all rose more than 1
percent, helped by Chinese inflation data that remained well
within the government's comfort zone, giving room for the
government to launch fresh stimulus measures if needed to
support the economy.
Last week's ECB cut in interest rates, and its move to start
charging banks for keeping their spare cash, ensured the impact
continued elsewhere. Fresh bets that the U.S. Federal Reserve
could begin to raise rates earlier than expected were also
supportive of the greenback.
"If broader measures are suggesting that the U.S. economy is
on a stronger footing, the market has to bring forward the
expectations of a Federal Reserve rate hike," said Aroop
Chatterjee, currency strategist at Barclays in New York.
The euro fell back near last week's four-month low against
the U.S. dollar at $1.3532.
The dollar index, which measures its strength against
a basket of key currencies, climbed 0.2 percent, though the
dollar was slightly lower against the yen at 102.38.
The greenback continued to benefit from rising U.S. Treasury
yields as the benchmark 10-year rate topped 2.65
percent for the first time since May 13.
"The Fed's bias could likely shift to a more hawkish stance.
They're a little worried about financial exuberance and a little
bit of complacency in the market," said Aaron Kohli, interest
rate strategist, at BNP Paribas in New York.
Next week's two-day meeting of Fed officials will be
followed by a press conference in which Fed Chair Janet Yellen
will likely be pressed on the timing of interest rate hikes.
In commodities, safe-haven gold edged up 0.7 percent as
equities slipped, while Brent oil dipped 0.3 percent and
U.S. crude prices gained 0.1 percent.
A breakdown in strike talks in South Africa pushed platinum
to a 3-year high while fears about an investigation into
metal financing in China sent copper to a new one-month
(Additional reporting by Ryan Vlastelica, Sam Forgione and
Gertrude Chavez-Dreyfuss; Editing by Nick Zieminski)