World markets overnight: Stocks rise as oil and gold fall

World stock markets continued to rise overnight as the US dollar strengthened and oil and gold prices slipped.

On Wall Street, both the Dow Jones Industrial Average and the S&P 500 hit new intraday highs after setting new records in the previous session.

However, prices wavered near the close. The Dow ended up 13.51 points, or 0.1%, to 18,312.39, while the S&P 500 slipped 1.37 points, or 0.1%, to 2127.83. The Nasdaq Composite Index lost 8.4 points, or 0.2%, to 5070.03.

The Dow has risen 2.7% in May and is up 2.8% for the year. The S&P has gained 2.0% this month and 3.3% in 2015.

US housing starts rose 20.2% in April from a month earlier to an annual rate of 1.135 million. That was the highest reading since November 2007.

On the corporate front, Wal-Mart Stores reported weaker-than-expected sales and a 7% drop in profit.

International markets
European stocks surged after the European Central Bank said it would moderately front-load purchases in its bond-buying programme.

Germany’s DAX rallied 2.2% and France’s CAC 40 advanced 2.1% as the euro plunged against the US dollar.

In Asia, stocks rose in China after Beijing approved six rail projects amounting to a total investment of ¥243.8 billion (about $US40 billion) and said it would speed up reform in the finance sector.

The Shanghai Composite Index finished up 3% and Hong Kong’s Hang Seng Index was up 0.4%.

Japan’s Nikkei Stock Average ended above the 20000 mark for the first time in three weeks.

Australian stocks fell a second straight day as investors dumped resources stocks and high-yield plays. The S&P/ASX 200 closed 0.8% lower.

Commodities and currencies
Oil prices tumbled as the US dollar strengthened and signs pointed to continued oversupply in the global crude market.

Light, sweet US crude for July delivery fell $US1.13, or 1.9%, to $US59.11 a barrel in New York. It was the fifth successive fall and the longest losing streak since March.

Brent crude, the global benchmark, was down $US1.02, or 1.5%, to $US65.25.

Gold prices ended a five-day rally as the US dollar surged.

The June delivery contract was down 1% at $US1214.90 an ounce after closing on Monday at a three-month high of $US1227.60.

The euro fell hard against the US dollar as the European Central Bank ramped up its asset-purchase programme. The euro was down 1.6% against the buck on the day at just over $1.11.