US stocks rise, up 5% for month

Stocks on Wall Street extended their strong December run as gains in the energy sector and a drop in the US dollar propelled the market to a fresh two-year high.

The Dow Jones Industrial Average saw its day-long rally nearly evaporate in the final minutes of trading, but was up 9.84 points, or 0.1%, to 11,585.38 at the close (10am NZ time).

The slight advance added to a gain of more than 5% this month. McDonald's led with a 0.7% rise, while Walt Disney and Wal-Mart Stores each rose 0.6%.

The Nasdaq Composite gained 0.2% to 2666.93 and the S&P 500 index added 0.1% to 1259.78.

Other markets: Europe, Asia up
Most European stock markets advanced, helped by a rally in gold miners, as investors started to wave farewell to what's been a solid 2010.

The Stoxx Europe 600 index added 0.3% to end at 280.63, bringing its gains for the month to 7.2%. December has been one of its hottest months, a shade below gains posted in March.

All sectors except the traditionally defensive telecoms and pharmaceutical areas firmed, although activity was light. France's CAC 40 gained 0.8% to 3890.65, its first gain in six sessions, while Germany's DAX added 0.3% to 6995.47.

The UK reopened for the first time since Christmas Eve, and its FTSE 100 slipped 0.2% to 5996.36, snapping a five-session winning streak that took it over the 6000 mark.

In Asia, the Hong Kong and Shanghai markets rebounded from recent declines, while Tower Australia surged 42% on a takeover bid from Dai-ichi Life Insurance.

Hong Kong's Hang Seng Index ended a three-day losing streak by bouncing 1.5% to 22,969.30. China's Shanghai Composite Index, which declined in nine of the previous 10 sessions, advanced 0.7% to 2751.53.

Japan's Nikkei Stock Average rose 0.5% to 10,344.54, Korea's Kospi added 0.5% to 2043.49 and India's Sensex rose 1.2% to 20,256.03.

Commodities: Oil down, gold up
Crude-oil prices pulled back in thin trading. The price of the light, sweet crude-oil futures contract for February delivery fell 37USc, or 0.4%, at $US91.12 a barrel in New York.
Brent crude on the ICE Futures fell 24USc, or 0.3%, to $US94.14 a barrel.

Gold finished above $US1400 an ounce for a second straight day on fresh investor demand but thin trading. The most actively traded contract, for February delivery, rose $US7.90, or 0.6%, to $US1413.50 an ounce.

Currencies: Dollar down, euro up
The US dollar weakened broadly in light trading, after strong demand for Treasury debt undermined optimism about the US economic recovery. The final note auction of the year for $US29 billion worth of seven-year notes found a healthy number of buyers.

The euro traded near $US1.3225, up from Tuesday's close at $US1.3119. The dollar bought ¥81.64, its lowest since November 12 and down from ¥82.45 late on Tuesday.

The dollar traded at 0.9464 Swiss franc, within view of Tuesday's record low at 0.9435 franc. The UK pound traded at $US1.5499 from $US1.5385. The Australian dollar surged further above parity against the dollar to a record high at $US1.0192.