Truck Talk Australia: US market falls amid new oil price high

"ABC News"

US stock prices headed decisively lower on Wall Street at the start of the new trading week, as a fresh high for oil prices undermines sentiment on equity markets.

The key futures contract on the New York Mercantile Exchange peaked overnight at $120.36 US a barrel.

More unrest in Africa's biggest oil-producing nation, Nigeria, which has been part of the explanation, along with bubbling tensions between the West and Iran.

The collapse of the Microsoft bid for internet search company, Yahoo was also a negative for share prices more broadly.

There was some suggestion that Bank of America might pull out of a deal to acquire the stricken mortgage company, Countrywide Financial.

News on the economic front was a little more positive with a survey of the giant US services sector showing a revival of activity.

The US Institute of Supply Management's non-manufacturing index for April rose back to 52, above the 50-level which denotes expansion.

On the New York Stock Exchange, the Dow Jones industrial average closed 89 points lower at 12,970.

The high-tech Nasdaq composite index lost 13 points to 2,464.

The French market edged up, while German share prices slipped a touch.

The British market was closed for a public holiday.

London's FT-100 index surged 128 points on Friday night to 6,216.

The Australian share market was boosted yesterday by firmer oil and metal prices, which sent resource stocks higher.

The All Ordinaries index rose 37 points to finish at 5,798 and BHP Billiton shares added 70 cents to $44.12.

The big banks were mostly firmer, with only the Commonwealth losing ground and slipping 75 cents to $44.20.

The Share Price Index 200 contract closed down 3 points at 5,730.

The 10-year bond contract was down 1.5 points at 93.59, with the implied yield rising to 6.41 per cent.

On foreign exchange markets, the Australian dollar advanced overnight.

At 7:30am AEST, it was being quoted at 94.69 US cents, up six-tenths of a cent on yesterday's local close.

On the cross-rates, it was at 61.09 euros cents; 99.21 Japanese yen; 48.01 pence Sterling; and against the New Zealand dollar it was at $1.205.

The gold price rose overnight to $US874.15 an ounce.

Oil and the spot price of West Texas crude jumped $US3.58 to $US119.94 a barrel.

"ABC News"