Wall Street slides as oil prices fall

Stocks on Wall Street slipped for a second day despite strength in the telecommunications and utilities sectors and positive economic signals.

US factory orders climbed for the fifth consecutive month in March after the previous month's numbers were revised sharply upward. Capital spending by businesses also surged as manufacturers sold to overseas markets amid weakness in the dollar.

Pfizer slumped 3.9% after it topped earnings expectations but reported revenue that fell shy of analysts' views. Energy stocks also weighed on the market as falling oil prices cut into shares of Chevron and Exxon Mobil, off 2.1% and 1.8%, respectively.

Alcoa jumped 3.1% on a burst of speculative trading on rumours that Rio Tinto could make a bid. At the close (8am NZ time), the Dow Jones Industrial Average was virtually unchanged at 12,807.51, while the S&P 500 index was down 0.3% to 1356.62. The Nasdaq Composite declined 0.8% to 2841.62.

Other markets: Europe, Asia down
European stock markets ended lower while the UK's main equities index bucked the negative trend to finish higher after being closed on Monday and last Friday for holidays.

The Stoxx Europe 600 index dropped 0.5% to end at 282.43. The German DAX 30 index slipped 0.4% to 7,500.70 and the CAC 40 index ended down 0.3% at 4,096.84.

In London, the FTSE 100 Index rose 0.2% to end at 6082.88, closed on Monday.

In Asia, Indian stocks tumbled after the central bank raised interest rates more than expected. Chinese stocks edged higher after data indicated that manufacturing growth had slowed, easing concerns of further monetary tightening.

The Reserve Bank of Australia as expected kept rates unchanged but the market fell. India's Sensex tumbled 2.4% to 18,534.69, Australia's S&P/ASX 200 dropped 0.8% to 4784.6, Korea's Kospi fell 1.3% to 2200.73 and Hong Kong's Hang Seng Index fell 0.4% to 23,633.25.

China's Shanghai Composite rose 0.7% to end at 2932.19. Markets in Japan were closed for a holiday.

Commodities: Oil falls as US dollar rises
Oil futures declined as the US dollar ended a two-week losing streak. Light, sweet crude for June delivery settled $US2.47, or 2.2%, lower at $US111.05 a barrel in New York, the lowest settlement since April 19.

Brent crude on the ICE futures exchange fell $US2.67, or 2.1%, to $US122.45.

The stronger dollar also led to a fall in gold prices. The most actively traded contract, for June delivery, settled 1.1%, or $US16.70, down at $US1540.40.

Silver prices slid 12% in 11 minutes when electronic trading opened as investors in Asia shed contracts to avoid paying higher margins. As trading costs rise, some investors opt to sell their positions instead of putting up additional cash.

The most actively traded July contract was down $US3.50, or 7.6%, at $US42.59 an ounce.

Currencies: US dollar rally fades
A rally in the US dollar faded and it fell back to a new low against the Swiss franc. The Japanese yen and euro also rebounded as dollar sentiment reversed on concerns about possible retaliation for the death of Osama bin Laden.

The dollar touched a new record low against the Swiss franc, falling as low as 0.8595 franc. It is at 0.8611 franc compared to 0.8651 late on Monday.

The euro was at $US1.4870 from $US1.4831 and at ¥80.99 from ¥81.24.

The dollar held gains against the UK pound and Australian dollar after being broadly higher against most other currencies.

The UK pound was at $1.6530 from $1.6656 and the Australian dollar was at $US1.0915 from $US1.0943.