Wall Street powers to 30mth high

Stocks on Wall Street reached the highest levels in two and a half years after strong bank-sector earnings boosted a rally the financial sector.

At the close (10am NZ time), tDow Jones Industrial Average rose 55.48 points, or 0.5%, to 11,787.38, reaching its highest level since June 2008. The gain put the Dow industrials up 0.9% for the week and extended the winning streak to a seventh week.

JP Morgan Chase led the Dow's climb with a 3.2% jump after it posted a 47% rise in fourth-quarter profit, beating analysts' expectations as revenue increased and loan-loss reserves were sharply reduced.

Intel slipped 0.7%, even though its fourth-quarter earnings rose 48%, topping analysts' views. Investors said they were unsure how much longer Intel will be able to post such strong numbers amid a weakening personal-computer market. Intel shares had climbed earlier in the week ahead of the report.

The Nasdaq Composite added 0.7% to 2755.30 and the S&P 500 index also gained 0.7% to 1293.24.

Other markets: Europe down, Asia mixed
European stocks finished the week on a mostly lower note but gained overall. The Stoxx Europe 600 index fell 0.1% to 283.77 but gained 1% for the week.

In London, the FTSE 100 index slipped 0.4% to 6002.07 but eked out a 0.3% weekly gain. In Frankfurt, the DAX 30 index finished virtually unchanged at 7075.70, but jumped 1.8% for the week.

In Paris, the CAC 40 index gained 0.2% to 3983.28, adding up to a weekly gain of 3%.

Indian shares closed at a four-month low as inflation and interest-rate worries triggered a sell-off, especially in banking and auto stocks.

Japanese stocks also ended lower, with exporters losing ground as the yen strengthened against the US dollar.

Korea's Kospi rose to yet another record, gaining 0.9% to 2108.17, a 1.1% rise for the week and its seventh straight week of gains. In Mumbai, India's Sensex fell 1.7% to 18,860.44, leaving it down 4.2% for the week.

In Tokyo, the Nikkei Stock Average fell 0.9% to 10,499.04, giving it a weekly loss of 0.4%. The Shanghai Composite index closed down 1.3% at 2791.34, falling 1.7% for the week, while Hong Kong’s Hang Seng rose 0.2% to 24,283.23.

Commodities: Oil up, gold down
Oil futures edged higher as stronger equities and positive US economic data outweighed the impact of monetary tightening in China.

Light, sweet crude for February delivery settled up 14USc, or 0.2%, at $US91.54 a barrel in New York. Brent crude on the ICE futures exchange finished up 62USc, or 0.6%, at $US98.68 a barrel.

Gold futures fell to a one-week low as stability in broader markets weakened it safe-haven appear. The most-actively traded contract, for February delivery, declined $US26.50, or 1.9%, to settle at $US1,360.50 an ounce in New York.

Thinly traded nearby January gold also lost $US26.50, to $US1360.40.

Currencies: Dollar down, euro steady
The euro was little changed against the dollar but made its biggest weekly gain against the US currency since May 2009.

China's surprise increase in bank-reserve requirements helped temper gains in riskier assets, keeping the euro's moves in check.

Against the euro, the dollar has been under heavy pressure most of the week because the euro received a big lift from strong debt sales in Portugal, Spain and Italy.

The euro was at $US1.3357 compared with $US1.3365 late on Thursday. The euro is up nearly 3.6% for the week, its best weekly performance since the week ended May 18, 2009.

The dollar was at ¥82.99 from ¥82.82, while the euro was at ¥110.85 from ¥110.57. The pound was at $US1.5868 from $US1.5825. The dollar was at 0.9647 Swiss franc from 0.9651 franc.