US stocks edge higher amid market jitters
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New York Stock Exchange ... the Dow Jones and the Nasdaq both closed higher. (File photo) (Reuters: Brendan McDermid)
Nerves remain stretched on American equity markets but stock prices are now heading decisively back into positive territory.
A profit report from investment bank Goldman Sachs was received well, surpassing forecasts.
However, the bank remains cautious about the immediate business outlook, saying the US subprime mortgage market is yet to reach its lowest point.
Addressing the broader global credit problems, the European Central Bank (ECB) pumped cash into the market, pushing down European money market rates.
The action follows Monday's auction by the US Federal Reserve of cheaper and anonymous funding.
However, there are still doubts about the effectiveness of the coordinated central bank action, mostly centring on the issue of trust among commercial banks.
The latest US economic data brought another weak reading on the residential construction sector.
Housing starts dropped 3.7 per cent in November and building approvals fell to their lowest level since 1993.
On the New York Stock Exchange, the Dow Jones industrial average was down as much as 75 points and closed up 65 points at 13,232.
The high-tech Nasdaq composite index added 22 points to 2,596.
The British market was little changed overall.
London's FT100 index rose just 1.5 points to 6,279.
Yesterday, the Australian market suffered its fifth successive day of decline however, it managed to recover much of a steep early fall.
The All Ordinaries index finished the day 39 points behind at 6,293.
Embattled shopping centre giant, Centro Properties Group, plunged another 55.5 cents to close at 80.5 cents.
BHP Billiton shares dropped 27 cents to $40.10 and Rio Tinto was $2.44 lower at $129.41.
However, Telstra shares rose five cents to $4.67.
On the overnight session on the Sydney Futures Exchange, the Share Price Index 200 contract closed up 29 points at 6,237.
The 10-year bond contract was up three points at 93.75, with the implied yield easing to 6.25 per cent.
On foreign exchange markets, the Australian dollar was just a fraction firmer on the night.
At 8am AEDT, the local currency was being quoted at 85.96 US cents, up less than one-tenth of a cent on yesterday's local close.
On the cross-rates, it was 59.68 euros cents, 97.49 Japanese yen, 42.72 pence Sterling and against the New Zealand dollar it was at $1.139.
The gold price was at $US802.20 an ounce.
Oil and West Texas crude eased 76 US cents to $US89.93 a barrel.
