Wall Street's blue chip index has risen to its highest in more than two years.Investors took the US Federal Reserve's decision to hold interest rates at near zero in their stride, as well as reacting positively to improving retail and business sales figur
Wall Street’s blue chip index has risen to its highest in more than two years.
Investors took the US Federal Reserve's decision to hold interest rates at near zero in their stride, as well as reacting positively to improving retail and business sales figures.
Inventories at US businesses rose less than expected in October as auto dealers and other retailers sold goods faster than they replenished stockrooms.
Business sales rose 1.4% to $US1.119 trillion, the highest business sales figure since September 2008.
Immediately after the Fed's mid-afternoon announcement, the Dow Jones Industrial Average rose to an intraday high of 11,514.08, its highest since September 2008.
It drifted back in later trading to rise 48.82 points, or 0.4%, to 11,477.38 at the close (10am NZ time).
The Dow's top performers were Kraft Foods, up 1.9%, Boeing up 1.7% and Merck 1.6%.
The Nasdaq Composite was up 0.1% at 2627.72, and the S&P 500 index also added 0.1% to 1241.60 after being higher during the session.
Other markets: Europe, Asia up
European stocks mostly rose as Germany's ZEW survey showed domestic economic expectations improved for the second consecutive month in December,
The Stoxx Europe 600 index was up 0.2% at 277.65, London's FTSE 100 was up 0.5% at 5891.21, Frankfurt's DAX was down marginally at 7027.40 and Paris' CAC-40 was up 0.3% at 3902.87.
In Asia, most markets made slight gains.
Korean shares ended at their highest level in more than three years on as Hyundai Heavy Industries led shipbuilders higher on a big new order.
Metal and energy sector shares advanced in several markets as a weakened US dollar boosted commodity prices.
The Korean Kospi, advanced 0.6% to 2009.05, its first finish above 2000 points since November 2007.
Japan's Nikkei Stock Average climbed 0.2% to close at 10,316.77 and Hong Kong's Hang Seng Index added 0.5% to end at 23431.19 while China’s Shanghai Composite rose 0.1% to 2927.08.
Commodities: Oil down, gold up
Crude futures pulled back from the $US90 a barrel level in New York after initially rising in reaction to the Fed's standstill on interest rates.
Light, sweet crude for January delivery settled 33USc, or 0.4%, lower at $US88.28 a barrel. Brent crude on the ICE futures exchange rose 2USc to $US91.21 a barrel.
Gold futures rose with the most actively traded contract, for February delivery, settling $US6.30, or 0.5%, higher at $US1404.30 an ounce in New York.
Currencies: Dollar up, euro down
The US dollar staged a comeback after encouraging news on retail sales and producer prices shored up confidence in its long-term outlook.
The dollar had fallen to its lowest level against the euro since November 23 and to a one-week low against the yen.
The euro was at $US1.3389 from $US1.3392 late on Monday. The dollar was at ¥83.48 from ¥83.44, while the euro was at ¥111.77 from ¥111.69.
The UK pound was at $US1.5757, from $US1.5859. The dollar was at 0.9613 Swiss franc from 0.9680 franc.
