Markets mixed after US economic figures released
There has been another flurry of economic figures in the United States, with the consumer price measure of inflation recording its biggest rise in eight months.
The CPI was up 0.5 per cent in December.
There has also been an unexpected rise in US housing starts and a report by the Philadelphia Federal Reserve is pointing to a surprisingly sharp increase in factory activity in the US mid-Atlantic region.
Shares in IBM have weighed on the overall market, with investors selling out ahead of the company's profit results expected after the close of trade.
On the New York Stock Exchange, the Dow Jones industrial average has closed down nine points at 12,568.
Technology stocks have come under further selling pressure after disappointing forecasts issued by computer maker Apple and Lam Research Corporation.
The high-tech Nasdaq composite index is 36 points lower at 2,443, a slide of 1.5 per cent.
The British market has managed a small recovery, with London's FT-100 index recouping just six points to 6,210.
Yesterday the Australian share market resumed its upward march, with the All Ordinaries index putting on 25 points to end at 5,651.
The resource and banking sectors were the mainstays.
BHP Billiton shares regained 22 cents to $24.74 and Woodside Petroleum jumped 90 cents to $36.60 after announcing record production and sales figures for 2006.
Overnight on the Sydney Futures Exchange, the Share Price Index 200 contract has closed down eight points at 5,635.
The 10-year bond contract is up 0.5 at 94.13, with the implied yield easing to 5.87 per cent.
On foreign exchange markets, the US dollar has remained close to four-year highs against the Japanese yen after the Bank of Japan decided to hold interest rates unchanged.
The Australian dollar has edged ahead overnight. At 7am AEDT it was being quoted at 78.85 US cents, up one-tenth of a cent on yesterday's local close.
On the cross currencies it was at 60.88 euros, 95.59 Japanese yen, 39.95 pence Sterling and against the New Zealand dollar it was at 1.133.
The gold price has eased to $US627.80 an ounce.
Oil prices have fallen sharply after US inventory data showed a big rise in stockpiles of crude and oil futures in New York have been to 20 month lows.
The spot price of West Texas crude has dropped $1.79 to $US50.51 a barrel.