US retail sales push stocks up

Stocks on Wall Street responded positively to better-than-expected US retail sales in July. But after peaking midway through the session, prices closed on their lows.

Shares in consumer-discretionary companies were further buoyed after Home Depot and other retailers delivered better-than-forecast results.

Retail sales rose 0.8% in July, exceeding expectations of a 0.2% rise.

European markets rose to their highest level in nearly five months after Germany and France delivered GDP figures that narrowly beat expectations.

At the close (8am NZ time), the Dow Jones Industrial Average eked out a 2.71-point gain to 13,172.14.

The broader S&P 500 slipped ast the end of trading to finish down 0.2 points at 1403.93 after being in positive territory for most of the session. The Nasdaq Composite Index fell 0.2% to 3016.98.

Other markets: Europe, Asia up
The Stoxx Europe 600 index climbed 0.7% to 270.54, its highest close since March 19.

Investors were focused on the latest GDP figures,  with the German economy growing 0.3% on a seasonally adjusted basis in the second quarter, topping forecasts of a 0.2% rise.

France's economy stagnated in the quarter but still topped expectations of a 0.1% contraction. Overall euro-zone GDP fell 0.2% in the second quarter.

In Frankfurt, the DAX index climbed 0.9% to 6974.39, the UK's FTSE 100 index advanced 0.6% to 5864.78 and France's CAC 40 climbed 0.7% to 3450.27.

Asian markets were also higher. Japan's Nikkei gained 0.5% to 8929.88, Korea's Kospi was up 1.3% to 1956.96 and Australia's S&P ASX 200 was up 0.2% to 4292.20.

Hong Kong's Hang Seng Index gained 1.1% to 20,291.68, while the Shanghai Composite was 0.3% higher at 2142.52.

Currencies: Oil up, gold down
Oil prices rallied on the strong US retail sales figures and respectable economic results out of major European economies.

Front-month oil futures rose 70USc, or 0.8%, to settle at $US93.43 a barrel in New York. Brent futures settled at $US114.03 a barrel, up 43USc.

Gold for December delivery, the most actively traded contract, settled down $US10.20, or 0.6%, at $US1,602.40 an ounce in New York.

Currencies: US dollar gains on euro
The US dollar turned higher after the retail sales data damped speculation the US Federal Reserve may ease policy and weaken the greenback further.

Before that, the euro held modest gains in the aftermath of eurozone GDP data.

The euro moved up as high as $US1.2385, then reversed to buy $US1.2334, little changed from $US1.2333 in North American trading late on Monday.

The Japanese yen weakened, with the dollar fetching ¥78.76 versus ¥78.32. The UK pound traded at $US1.5687, from $US1.5684.