Stock prices have swung in a reasonably wide range in and out of positive territory.

Early weakness was sparked by a disappointing pointer to the health of the labour market.

The weekly number of new claims for unemployment benefits in America has risen to a worse-than-expected 407,000.

That is a level some commentators say is normally associated with recessions.

All eyes will be on tonight's release of US payroll numbers.

In the meantime, other figures out overnight suggest the services sector of the American economy is not contracting as sharply as feared.

On Wall Street, energy and mining stocks underpinned a mid-session rally.

On the New York Stock Exchange, the Dow Jones industrial average has closed 20 points ahead at 12,626.

The high-tech Nasdaq composite index is two points higher at 2,363.

In Europe, key markets have surrendered about half their gains of the previous session.

Share prices are down about 0.5 per cent in Germany, France and Britain.

London's FT-100 index has lost 25 points to 5,891.

Local markets

Yesterday in Australia, the market surged ahead again, with the lead provided by the resources and banking sectors.

The All Ordinaries index jumped 101 points to close at 5,646, a gain of 1.8 per cent.

BHP Billiton shares climbed $1.34 to $38.09.

Overnight on the Sydney Futures Exchange, the Share Price Index 200 contract has closed up 14 points at 5,679.

The 10-year bond contract is unchanged at 93.85, with the implied yield at 6.15 per cent.

On foreign exchange markets, the Australian dollar has moved ahead again overnight.

About 6:45am AEDT, it was was being quoted at 91.56 US cents, up 0.2 of a cent on yesterday's local close.

On the cross-rates, it was at 0.5843 euros, 93.70 Japanese yen, 45.92 pence Sterling; and against the New Zealand dollar it was at 1.165.

The gold price had edged up overnight to be quoted at $US903.70 an ounce.

The spot price of West Texas crude oil had eased back 91 US cents to $103.92 a barrel.

Source: By Australian Broadcasting Corporation