NEW YORK: Global share prices rose marginally on Thursday but investors showed little conviction ahead of US corporate results, while weak US retail sales data spurred buying of US Treasuries.
The yen rose after the sales data reinforced perceptions US interest rates will remain unchanged for the foreseeable future. The euro was undermined after European Central Bank President Jean-Claude Trichet reiterated the importance of a strong dollar.
At 1305 p.m. EST (1805 GMT) the Dow Jones Industrial Average was up 21.39 points, or 0.20 percent, at 10,702.16. The Standard & Poor’s 500 Index gained 1.03 points, or 0.09 percent, to 1,146.71. The Nasdaq Composite Index climbed 6.05 points, or 0.26 percent, to 2,313.95.
In Europe, shares closed higher, boosted by gains in the pharmaceuticals sector. The pan-European FTSEurofirst 300 rose 0.7 percent to a provisional close of 1,063.42 points, gaining for a second straight session. MSCI’s all-country world stock index was up 0.49 percent.
The US dollar had a mixed performance. It fell 0.39 percent to 91.04 yen, while the euro lost 0.14 percent to $1.449 against the greenback.
Oil prices crawled up to near $80 a barrel Thursday as rising stock markets cheered crude investors ahead of fourth quarter corporate earnings reports. By early afternoon, benchmark crude for February delivery fell 15 cents to $79.50 a barrel on the New York Mercantile Exchange. Earlier in the session, the contract reached $80.36 before retreating. Oil investors often look to stock markets as a measure of overall investor sentiment about the economy.
Oil has fallen from near $84 a barrel earlier this week on signs of weak US crude demand. The Energy Information Administration said Wednesday that US oil inventories grew more than expected last week, despite a cold weather spell that analysts expected to boost demand for oil products such as heating oil.
In other Nymex trading in February contracts, heating oil dropped 1.36 cents to $2.081 a gallon and gasoline gained less than a penny at $2.0699 a gallon.
Natural gas prices tumbled after a government report showed that even after a frigid two-week winter blast, US stockpiles are still well above average for this time of year.
In London, Brent crude for February delivery gave up 40 cents to $77.91 a barrel on the ICE Futures exchange.