Blue chip stocks rise, cutting Dow's losses for 2009

Stocks on Wall Street have climbed cautiously, with the materials sector gaining steam on the week's positive manufacturing data and rising commodity prices.

The Dow Jones Industrial Average is up 28 points, or 0.3%, at 10,432, putting the measure is in the black for 2010 for the first time since January. The index ended 2009 at 10,428.05.

Rising metals futures, as well as Monday's data showing continued expansion in the manufacturing sector, helped boost materials and industrials stocks, including Caterpillar, up 1.5% and Boeing, up 1.1%. American Express also climbed, rising 2.1%. Wal-Mart shed 0.5%, as did AT&T.

The Nasdaq Composite has gained 0.4% to 2283 and the S&P 500 index is up 0.4% to 1120. Its materials and financial sectors led the advance, while telecommunications stocks lagged.

Other markets

European stocks were little changed, trading in a tight range as investors awaited clarification over how Greece will resolve its debt problems.

Deutsche Telekom lost 1% after Barclays Capital downgraded the stock after the company's 2009 results. On the upside, Allied Irish Banks rose 5% after its full-year results topped expectations, despite the company posting its first ever full year loss and saying the outlook and environment remained challenging.

The pan-European Stoxx 600 Index was down 0.3% at 248.31. London's FTSE 100 Index was just 0.2% higher at 5415, Frankfurt's DAX was up 0.1% at 5720, and the CAC-40 Index in Paris was flat at 3770.

Asian shares ended mostly higher as technology stocks gained ground on buoyant consumer demand, though disappointing earnings results from HSBC Holdings dragged on Hong Kong.

The Reserve Bank of Australia raised its policy interest rate for the fourth time in five meetings, by a quarter percentage point to 4%, capping gains in Sydney, while robust sales in February boosted automobile shares in Mumbai.

Australia's S&P/ASX 200 advanced 0.3% to 4701.92, Japan's Nikkei 225 Average gained 0.5% to 10,221.84, Taiwan's Taiex inched up 0.3% to 7597.62, China's Shanghai Composite fell 0.5% to 3073.11 and Hong Kong's Hang Seng Index fell 0.7% to 20,906.11.

Indian, South Korean and Thai shares posted solid gains to catch up with regional advances during Monday's holiday in the three markets. The Kospi finished 1.3% up at 1615.12 in Seoul and India's Sensex rose 2.1% to 16,772.56.

Commodities: Oil, gold up

Oil futures are higher with investors seeking riskier assets, such as oil and equities, but caution remains ahead of Wednesday's oil-inventory report.

Light, sweet crude for April delivery traded 38USc, or 0.5%, higher at $US79.08 a barrel in New York. Brent crude on the ICE futures exchange traded 59USc, or 0.8%, higher at $US77.48.

Gold futures hit their highest level in six weeks as the metal followed crude oil higher and was boosted by further buying against currencies.

Most-active April gold was up $US15.70, or 1.4%, to $US1133.90 an ounce in New York. Lightly traded but nearby March gold was up $US16, or 1.4%, to $US1133.80.

Currencies: Canadian dollar soars

The Canadian dollar gained strongly against the US dollar after the Bank of Canada left key interest rates unchanged at 0.25% but issued a slightly rosier assessment of its economy.

The US dollar dropped to $C1.0335 from $C1.0417 late on Monday. The US dollar initially fell as far as $C1.0310, its lowest level since January 20.

The Canadian announcement followed a decision by the Reserve Bank of Australia to increase key rates, pointing to two economies emerging from the global doldrums as the euro zone struggles with issues of sovereign debt.

The downward pressure on the pound was much less intense than in Monday's session after recent polls showed the chances of a hung Parliament had eased somewhat.

The euro is at $US1.3552 from $US1.3560 late on Monday. The dollar is at ¥88.96 from ¥89.09, while the euro is at ¥120.56 from ¥120.79.

The UK pound is at $US1.4939 from $US1.4989.