The broad S&P 500-stock index hit a fresh two-year high as Wall Street cheered an agreement between President Barack Obama and Republican leaders in the Congress that could extend income tax cuts for two years.But investor enthusiasm for smaller stock
The broad S&P 500-stock index hit a fresh two-year high as Wall Street cheered an agreement between President Barack Obama and Republican leaders in the Congress that could extend income tax cuts for two years.
But investor enthusiasm for smaller stocks did not flow through to the blue chips, which were kept in check by renewed fears about Ireland's ability to absorb its austerity budget.
At the close (10am NZ time), the S&P 500 index was marginally up 1223.75 after earlier peaking at 1235.05, its highest intraday level since September 22, 2008.
By contrast, the Dow Jones Industrial Average finished 3.03 points lower at 11,359.16 after hitting an intraday high of 11,450.89 and close to its September 2008 highs.
3M led the decliners with a 3.1% drop after its reported at the low end of its 2011 forecast for earnings with revenue below analysts' estimates.
GE was the best performer with a 1.9%. Chevron added 1.6% and Caterpillar 1.3%.
The Nasdaq Composite was up 0.1% at 2598.49.
Other markets: Europe, Asia up
The Stoxx Europe 600 Index was up 0.9% at 273.91. London's FTSE 100 was 0.7% higher at 5808.45 and Frankfurt's DAX was up 0.7% at 7001.91, surpassing the 7000 level for the first time since June 2008.
In Paris, the CAC-40 Index was 1.6% higher at 3810.50, while Ireland's ISEQ Index was up 1.7% at 2799.97.
European stocks rose and the euro strengthened on expectations that Ireland's austerity budget will pass a parliamentary vote – a move that would ease concerns about euro-zone sovereign debt.
Asian markets ended mostly higher as risk appetite improved after President Obama announced an extension of tax cuts and Ireland's parliament prepared for a budget vote.
Shanghai stocks recovered from initial losses sparked by a media report that China's central bank might raise rates around the weekend. Australian shares advanced after the central bank there left interest rates unchanged and signaled a steady monetary policy.
China's Shanghai Composite Index gained 0.7% to 2875.86, Hong Kong's Hang Seng Index added 0.8% to close at 23,428.15, Australia's S&P/ASX 200 advanced 0.8% to 4726.84 and Korea's Kospi climbed 0.5% to 1962.52.
Japan's Nikkei Stock Average fell 0.3% to 10,141.10 as a stronger yen continued to weigh on exporters and India’s Sensex dropped 0.2% to 19,934.64..
Commodities: Oil, gold down
Oil futures retreated after touching a two-year high above $US90 a barrel, as traders pulled back from the key price threshold following last week's strong run.
Light, sweet crude oil for January delivery settled 69USc, or 0.8%, to $US88.69 a barrel in New York, after earlier rising as high as $90.76, the highest price since October 2008. Brent crude oil on the ICE futures exchange fell 18USc, or 2%, to $US91.27 a barrel.
Gold futures fell on a flurry of profit-taking but remained above the $US1400 level.
The most actively traded contract, for February delivery, was down $US7.10. or 0.5%, at $US1432.50 an ounce in New York.
Currencies: Dollar up, yen down
The dollar has rallied sharply on the back of rising US Treasury yields. It hit an intraday high of ¥83.20 after falling to a three-week low against the yen earlier in Asia.
The euro pared some of its gains against the dollar that came amid an expected positive vote on the Irish 2011 austerity budget.
The euro was at $US1.3326 from $US1.3314 late on Monday. The dollar was at ¥83.08 from ¥82.62, while the euro was at ¥110.77 from ¥110.05.
The UK pound was at $US1.5804 from $US1.5722 and the dollar was fetching 0.9825 Swiss franc – also hitting an intraday high – from 0.9820 franc.
