Wall Street retreats on mixed economic signs

Stocks on Wall Street retreated from their earlier highs after a disappointing slate of economic data.

The reversal came after sales of new homes unexpectedly fell 2.2% in December and the Conference Board's leading economic index rose 0.4% in December, below estimates of a 0.7% rise.

The data overshadowed earlier releases that were seen as bullish, with jobless claims in line with expectations and durable goods orders surging 3% in December, above estimates of 2%.

The Dow Jones Industrial Average closed 22.03 pints down, or 0.2%, at 12,734.93 (10am NZ time), down from a high of 12,841.

The Dow was earlier sustained by fourth-quarter earnings from Caterpillar and 3M but weakened along with the broader market.

The S&P 500 index gave up all its early gains to shed 0.6% to 1318.47, while the Nasdaq Composite was off 0.5% at 2805.28.

Other markets: Europe up, Asia mixed
European stocks climbed to a five-month high, a day after the USFederal Reserve said it would keep US interest rates near zero until late 2014.

The Stoxx 600 index gained 1.1% to 257.86, snapping a two-day losing streak. The DAX 30 index added 1.8% to finish at 6539.85 in Germany.

The French CAC 40 index rose 1.5% to 3363.23 and the UK’S FTSE 100 index moved 1.3% higher to 5795.20.

Hong Kong stocks jumped as investors returned from the New Year holiday. The Hang Seng Index ended 1.6% higher at 20,439.14, bringing its winning streak to five sessions.

Other Asian markets were less enthusiastic, with gains in Korea tempered by weaker-than-expected economic-growth data, while Japanese shares retreated from near a three-month high.

Korea's Kospi gained 0.3% to 1957.18 and Japan's Nikkei Stock Average fell 0.4% to 8849.47.

Chinese and Taiwanese markets remain closed for the New Year holiday, while markets in Sydney were shut for Australia Day.

Commodities: Oil above $US100, gold rises
Crude-oil futures climbed above $US101 a barrel after Iran threatened to immediately halt sales to the European Union.

Oil also gained support from a weaker US dollar and strong U.S. economic indicators.

Light, sweet crude oil for March delivery in New York was 1.7%, or $US1.70 a barrel higher, at $US101.10 a barrel, after hitting a one-week high of $US101.39 a barrel. ICE North Sea Brent crude was $US1.82 higher at $US111.63 a barrel.

Gold prices climbed to levels last seen in early December, fuelled by fears of inflation and a weaker dollar.

Gold for February delivery added $US26.60, or 1.6%, to end at $US1,726.70 an ounce in New York. That was gold's highest settlement since December 7.

Currencies: US dollar loses ground
The US dollar extended losses against most major rivals.

The euro was at $US1.3148, up from $US1.3106 late on Wednesday, hitting its highest level of the new year.

The Japanese yen also gained ground. The dollar was at ¥77.49, down from ¥77.78.