KEY POINTS:
Stocks in the US finished little changed yesterday, as surging oil prices lifted energy shares and offset data that showed consumer confidence sank to its lowest in 28 years.
Exxon Mobil and Chevron rose more than 1 per cent each, supporting the Dow and S&P 500. Oil prices
closed in New York at a record high above US$126 ($163) on a weakening dollar and a Goldman Sachs forecast crude would reach $141 per barrel. Earlier, US oil futures hit an intraday record near $128.
The lofty level of oil prices helped drive down other sectors, however. An S&P index of retail shares was down 1.1 per cent.
US consumer confidence has tumbled this month, according to the Reuters/University of Michigan survey of consumers, as short-term inflation expectations hit their highest since the stagflation era of the early 1980s.
For the week, stocks rose, however, and the S&P had its best weekly percentage gain in about a month, with data showing a modest rise in consumer prices in April.
The Dow Jones slipped 5.86 points, or 0.05 per cent, to end at 12,986.80.
But the Standard & Poor's 500 inched up 1.78 points, or 0.13 per cent, to 1425.35.
The Nasdaq dropped 4.88 points, 0.19 per cent, to 2528.85.
For the week, the Dow was up 1.9 per cent, the S&P rose 2.7 per cent and the Nasdaq was up 3.4 per cent.
Meanwhile, Britain's FTSE rose 0.8 per cent to hit its highest closing level in four months as surging crude prices pumped oil shares higher, while bid activity powered British Energy.
The FTSE 100 closed up 52.5 points at 6304.3, gaining 99.6 points over the week.
European shares rose, fed by a rally in energy stocks as crude oil prices hit fresh highs.
Crude oil futures hit a high just shy of $128 a barrel to drive up the oil and gas sector across Europe, pushing up shares in BP, Royal Dutch Shell and Total.
The FTSEurofirst 300 index of top shares rose 0.2 per cent to close at an 1365.20 points, gaining 1.5 per cent last week.
Japan's Nikkei stock average snapped a four-day winning streak to end down 0.2 per cent as investors locked in profits and exporters such as Canon were sold on a slightly stronger yen, but the benchmark still saw its strongest week in three months.
The Nikkei lost 32.26 points yesterday to finish at 14,219.48, but still gained 4.1 per cent on the week, its best since mid-February, rising 564.14 points since May 9.
In Hong Kong, stocks closed up, but gains were pared after the Tokyo and Shanghai markets reversed course to close lower, while equipment maker Dongfang Electric slid as it detailed damage from the earthquake in China. The Hang Seng Index closed up 0.41 per cent at 25,618.86 points, off from yesterday's high of 25,748.33. It gained 2.25 per cent for the week, up 554.83 points.
Australian shares rose 0.7 per cent, approaching the 6000 mark for the first time in more than three months, with BHP Billiton leading gains on fresh speculation of Chinese interest in the firm. The S&P/ASX 200 index rose 40.3 points to 5931.0, a level not seen since February 4. The index added 159.2 points since May 9.
- REUTERS
