NEW YORK: Oil prices rose yesterday on a surprisingly strong reading of US consumer sentiment and more upbeat factory news and US stocks seesawed over break-even as investors booked gains after the best gains in April in years.
US government bond prices fell, sending yields to new 5-month highs due to improved consumer sentiments and less shrinkage in the US factory sector in April.
The dollar climbed to a two-week high against the yen but slipped against the euro and perceived higher-risk currencies as investors bet the worst is past.
At 1 p.m., the Dow Jones Industrial Average was up 0.40 points, or 0.00 percent, at 8,168.52. The Standard & Poor’s 500 Index was up 2.08 points, or 0.24 percent, at 874.89. The Nasdaq Composite Index was up 1.91 points, or 0.11 percent, at 1,719.21.
Oil rose above $53 a barrel on improved consumer sentiment and evidence of record compliance by the Organization of Petroleum Exporting Countries to abide by output cuts. OPEC reduced supply in April, implementing 84 percent of an agreed output cut, a Reuters survey showed. Compliance set a record, with the average around 60 percent. US light sweet crude oil rose $2.04 to $53.16 a barrel.
Downward pressure on stocks came from investors who chose to book some gains after the strong run-up since the bear market low in early March. The benchmark S&P 500 index recorded its biggest rise in nine years last month.
Britain’s top share index was flat by the close after sharp gains the previous two sessions, with rising mining stocks offset profit-taking in energy and defensives.
The pan-European FTSEurofirst closed 0.1 percent higher at 829.65 and the FTSE 100 index closed 0.49 points lower at 4,243.22. Other European markets were closed.
The euro rose 0.24 percent at $1.3258. The dollar fell against a basket of major currencies, with the US Dollar Index off 0.23 percent at 84.632. Against the yen, the dollar rose 0.88 percent at 99.43.
Gold dipped as a recovery in risk appetite, reflected in a firmer tone to global stocks, dented interest. Spot gold prices rose 80 cents to $886.30 an ounce.
Japanese stocks set a four-month closing high, with the Nikkei average gaining 1.7 percent despite more bleak data showing the economy slipping back into deflation and unemployment rising at a record pace in March.
But the MSCI index of Asia-Pacific shares outside Japan dipped 0.2 percent and pulled back from a six-month high, mainly on a slight drop in Australian shares. Most markets included in the index were closed.
