US markets

U.S. stocks meandered into positive territory Thursday as a white hot reading from mid-Atlantic manufacturers outweighed higher than expected jobless claims and a rise in U.S. consumer prices. A day after investors pushed the Standard & Poor's 500-stock index to twice its financial crisis low, the Dow Jones Industrial Average rose 33 points, or 0.3%, to 12322 in afternoon trade, while the Standard & Poor's 500-stock index rose 5 points, or 0.3%, to 1341 and the Nasdaq Composite gained 7 points, 0.3%, to 2833.

[Get this delivered to your inbox for FREE. Subscribe to our daily Markets Newsletter.]

Energy and materials stocks led the S&P 500, while Coca-Cola and DuPont led the Dow's gainers. The Federal Reserve Bank of Philadelphia's index of general business activity hit its highest level since January 2004, outstripping expectations as it jumped to 35.9 in February from 19.3 the month before. Though factories represent a relatively small amount of total U.S. economic performance, they tend to serve as a leading indicator, and the strong reading was seen as a positive signal of the economy's momentum.

Even so, the U.S. labor market remained sluggish, blunting investors' optimism. Initial jobless claims increased by 25,000 to 410,000 in the week ended Saturday, the Labor Department said in its weekly report. Economists surveyed by Dow Jones Newswires had expected claims would rise by 17,000 to 400,000.

Separately, the seasonally adjusted consumer-price index last month increased 0.4% from December, and underlying inflation, which excludes volatile energy and food prices, rose 0.2%. Investors were keeping a close eye on tensions in Libya and Bahrain, as well as tensions between Iran and Israel over the Suez Canal. So far, those issues haven't dominated the day's trading. However, strategists warned that sentiment on simmering Middle East and North African tensions could change quickly.

Among stocks in focus, NetApp weighed on the technology sector, skidding 6.9% after a disappointing earnings report. Chip maker Nvidia rose 9.2% after the company posted a 31% increase in fourth quarter earnings and better than expected first-quarter guidance late Wednesday.

European markets

European stocks eked out gains Thursday, as upbeat manufacturing data from the U.S. boosted sentiment late in the trading session, helping the markets erase earlier losses. The index of manufacturing activity in the Philadelphia region surged in February to its highest level since January 2004, data showed.

The Stoxx Europe 600 index rose 0.2% to end at 291.16, its highest close since at least August 2008. The index finished higher for a fifth straight session. Other European benchmarks managed marginal gains. France's CAC 40 index closed up 0.03% at 4,152.31 and the U.K.'s FTSE 100 index edged up 0.03% to 6,087.38. Earnings were back in the spotlight, with shares of French information-technology services provider Capgemini SA surging nearly 8%. It reported profit in the second half of fiscal 2010 rose 57% and forecast revenue growth of between 9% and 10% for 2011.

Shares of BNP Paribas SA slipped 0.3% after a 15% rise in its fourth-quarter net profit fell short of consensus forecasts. In London, shares of BAE Systems PLC fell 4.2% after the group said it was cautious on 2011 given the weight of U.S. defense budget cuts. Shares of Reed Elsevier PLC fell more than 2%. Germany's DAX 30 index dropped 0.1% to 7,405.51, as car makers lost ground. Shares of Volkswagen AG fell 1.6%, Daimler AG slipped 1.1% and BMW AG shed 1%. Banks were mixed in Frankfurt, with Commerzbank AG rising 2.9%, while Deutsche Bank AG fell 1.4%.

Asian markets

Chinese and Hong Kong stocks ended higher after a roller coaster ride Thursday, driven by hopes for solid economic growth. Property developers fell after Chinese authorities announced fresh restrictions on home purchases in Beijing. Many other major markets also climbed, with Japanese shares rising for the fourth day in a row as exporters extended gains amid positive cues from Wall Street.

Japan's Nikkei Stock Average rose 0.3%, while South Korea's Kospi shed 0.6% and Taiwan's Taiex lost 0.3%. Hong Kong's Hang Seng index and China's Shanghai Composite each changed direction a few times as property developers kept the markets pressured, but finished 0.6% and 0.1% higher, respectively.

Mainland property developers came under selling pressure after the Beijing municipal government placed fresh limits on home purchases Wednesday. Beijing Vantone Real Estate lost 1.8% and China Vanke shed 1.9% on mainland bourses, while Guangzhou R&F Properties tumbled 3.1% and China Overseas Land & Investment gave up 3% in Hong Kong. But gains in some steel, shipping and automobile stocks outweighed those declines. Shares of Wuhan Iron & Steel rose 2%, Cosco Shipping rose 2.3% and CNHTC Jinan Truck rose 0.6% to extend gains. Japanese shares ended higher, again led by exporters after a higher finish on Wall Street. Sony rose 1.8% and Nissan Motor added 1.1%.

Honda Motor advanced 1.1% after the Nikkei reported that the auto maker will likely conduct additional share buybacks of up to 40 billion yen ($479 million) in the fiscal year ending March 31 to meet its goal of returning 30% of net profits to shareholders.

Base metals

Copper closed lower for the third consecutive day on the London Metal Exchange Thursday, with market players hailing a deeper correction to come, as risk aversion and the acceptance that current fundamentals don't match the metals' high price weighed on its performance. LME three month copper traded at $9,805 a metric ton, down 0.4% on the day, at the PM kerb close, after falling to $9,705/ton in earlier trade, its lowest price in over two weeks.

Tin, which has been the complex's star performer in recent weeks, was the hardest hit of the base metals, hitting a near two week low of $30,801/ton. This sparked relief among some market players, who have repeatedly voiced concern that the metal's price has been running ahead of physical demand in recent weeks.

Light, sweet crude oil futures settled above $86 a barrel Thursday as traders detected a tighter market for near-term supplies in the U.S. Front month March delivery crude oil futures on the New York Mercantile Exchange expire at Tuesday's settlement, following the market's closure Monday for the Presidents Day holiday, traders said. That has generated a spurt of buying in near term contracts against the backdrop of simmering tensions in the Middle East, the global oil patch. March crude traded at a high of $86.50 a barrel, the highest intraday level since Monday. The contract settled at $86.36 a barrel, up 1.6%. Comex gold futures ended at a fresh five week high on technical trading and muted U.S.economic data, while increased hedging by silver producers pushed silver prices to fresh 31 year highs.

The most actively traded contract, for April delivery, settled up 0.7%, or $10, at $1,385.10 a troy ounce on the Comex division of the New York Mercantile Exchange. The thinly traded February delivery contract settled up 0.7%, or $10, at $1,384.70 a troy ounce.

More from Global Markets:
Newsletter: To receive Global Markets update, sign up here