U.S. Market

U.S. stocks extended their multi-year highs Thursday as the market clung to optimism generated by the Federal Reserve's plans to keep interest rates low and the flow of encouraging corporate earnings. The Dow Jones Industrial Average rose 72.35 points, or 0.6%, to 12763.31.

Leading the blue-chip measure, Boeing climbed 3.2%. Procter & Gamble was also strong, rising 0.8% after its first-quarter earnings beat analysts' estimates, though the global consumer-products firm offered cautious guidance for the year, reflecting higher commodity costs.

[Sign up here to get this report delivered to your inbox daily]

The Nasdaq Composite added 2.65, or 0.1%, to 2872.53. The Standard & Poor's 500-stock index rose 4.82, or 0.4%, to 1360.48. After hitting a new closing high Wednesday, the Russell 2000 index of small capitalization stocks extended its gains, rising 3.24 points, or 0.4%, to 861.55.

The Dow Jones Transportation Average, which is often seen as important evidence of an active economy, reached a new all-time closing high at 5510.06, topping its previous record close of 5493 from June 6, 2008. The market Thursday largely looked past a lukewarm round of economic data. U.S. pending home sales climbed more than expected last month, but gross domestic product showed a significant slowing from the previous quarter. A third batch of data showed U.S. jobless claims unexpectedly rose last week.

European Markets

European stock markets advanced Thursday, boosted by strong results from Deutsche Bank, Bayer AG and Suez Environnement SA. The Stoxx Europe 600 index closed up 0.3% at 283.04, supported by the insurance and utility sectors. The benchmark got an initial boost from a late rally in U.S. stocks after the Federal Reserve pledged to keep interest rates low. A string of positive earnings updates then kept the momentum going.

[Sign up here to get this report delivered to your inbox daily]

Deutsche Bank shares rose 4.8% after it reported a 17% increase in net profit as a string of recent acquisitions helped drive growth. Also in Germany, Bayer AG rose 2% after the drug maker lifted its annual sales and profit forecast and reported an 8% increase in profit. The gains helped the DAX 30 index to shrug off weakness in the technology sector after a disappointing update from business software specialist SAP AG, shares of which fell 5.7%.The DAX rose 1% to 7,475.22.

In France, stocks in focus included Suez Environnement, up 4%, after the company beat expectations with a 29% increase in earnings before interest, taxes, depreciation and amortization. The French CAC 40 index added 0.9% to 4,104.90.

Elsewhere in Europe, Spain's Ibex 35 index advanced 1.1% to 10,858.1, led by a 1.5% gain for Banco Santander SA. In the U.K., the FTSE 100 index finished virtually unchanged at 6,069.90. U.K. markets are closed Friday for the Royal wedding and Monday for a holiday.

Asian Markets

Asian shares ended mixed with markets in China dragged down by concerns that Beijing could tighten monetary policy in the near term. Most regional markets began the day on an upbeat note after the U.S. Federal Open Market Committee signaled Wednesday that its controversial $600 billion bond purchase program will end in June.

[Sign up here to get this report delivered to your inbox daily]

Japan's Nikkei Stock Average, the day's best performer, finished at 9849.74, rising 1.6% despite grim data on industrial production down a record 15.3% in March from the previous month. Kyocera soared 5.3% after reporting strong earnings for its fiscal fourth quarter and Advantest jumped 5.6% after posting a sharply narrower loss.

South Korea's Kospi advanced 0.1% to 2208.35, well off the day's highs. Declining markets were led by Shanghai, where the Composite index fell 1.3% to 2887.04, the fifth straight down session. Hong Kong's Hang Seng Index fell 0.4% to 23805.63 and Taiwan's Taiex lost 0.1% to 9040.77.

Base Metals

Base metals closed mostly higher on the London Metal Exchange Thursday after a weaker U.S. dollar helped to lift the markets ahead of a long weekend for LME traders.

Copper and lead were the only two metals on the exchange not to end in positive territory, closing the session virtually unchanged. A soft greenback was, though, key in buoying the dollar-denominated metals, which appear cheaper to other currency holders when the dollar falls.

Aluminum on the LME for three-month delivery recorded an early intraday high at $2,778.50 a metric ton--up 1.3% on the day and the contract's highest value since August 2008. It closed up 0.9% at $2,767.50/ton.

[Sign up here to get this report delivered to your inbox daily]

Crude futures retreated Thursday after hitting fresh two-and-a-half year highs, settling nearly flat as worries spread that high prices will slow fuel purchases by businesses and consumers.

Light, sweet crude for June delivery settled 10 cents, or 0.1%, higher at $112.86 a barrel on the New York Mercantile Exchange, after fluctuating between gains and losses throughout the session. Futures rose as high as $113.97 earlier in the session, before retreating.

Brent crude on the ICE futures exchange fell 12 cents to $125.01 a barrel. Gold and silver futures extended their unprecedented rally, with both metals finishing at record highs after data showed U.S. economic growth slowed while rices for gasoline and food rose.

The most-actively traded gold contract, for June delivery, rose $14.10, or 0.9%, to settle at a record $1,531.20 a troy ounce on the Comex division of the New York Mercantile Exchange. Nearby May gold jumped $14.20, or 0.9%, to settle at a front-month record $1,530.80.

More from IBT Markets:
Newsletter: To receive Global Markets update, sign up here
Forex: Get Free Forex Education Materials and Forex News & Tips from our Forex Section.