Currencies
The euro climbed to a one-week peak against the U.S. dollar on Thursday as a solid sale of Spanish and Italian debt and more upbeat comments about the euro-zone economy from the European Central Bank chief eased concerns about the region's debt.
Spain sold the targeted amount at its auction of a new, three-year bond and two existing bonds maturing in 2016, while yields halved at an Italian sale, reflecting the success, at least for now, of what amounts to a back-door bailout by the ECB.
The ECB, meanwhile, held rates steady at 1 percent as widely expected after two successive rate reductions, with bank president Mario Draghi citing "signs of stabilization activity at low levels" in the euro zone economy.
In late afternoon New York trading, the euro was about 1 percent higher at $1.28297, having touched a session high of $1.28460. That is up sharply from a 16-month low of $1.26615 hit on Wednesday.
Euro/dollar gains pushed the dollar 0.7 percent lower versus a currency basket to 80.770, but it was within sight of 81.49 hit on Wednesday, its highest in 16 months.
Against the yen, the dollar was down 0.2 percent at 76.770.
Energy
Oil prices tumbled on Thursday in a late sell-off sparked by a report that a proposed European Union ban on imports of Iranian crude would be phased in over six months.
Having traded higher for most of the day, oil prices dropped soon after 2 p.m. EST (1900 GMT) following a Bloomberg News report, citing an unidentified EU official with knowledge of the matter, that the embargo would be delayed or phased in over six months.
In London, ICE Brent crude for February delivery settled down 98 cents at $111.26 a barrel, well off the day's peak of $115.12, the highest level since Nov. 9.
U.S. February crude oil settled at $99.10, falling $1.77, off the session high of $102.98. In post-settlement trading, the contract further dropped to a session low of $98.50, the lowest since Dec. 30 with selling picking up steam after prices dropped below $100.
Precious metals
Gold rose to a one-month high on Thursday, as comments by the president of the European Central Bank on cheap money stabilizing the region's banking system extended the metal's gain to a third consecutive day.
Gold gained despite sharp declines in crude oil and grain prices. Gold has gained around 6 percent in 2012.
Spot gold was up 0.3 percent at $1,645.90 an ounce, having touched a one-month high at $1,661.71.
U.S. gold futures for February delivery settled up $8.10 an ounce at $1,647.70. Trading volume was 10 percent above its 30-day average, consistent with recent stronger turnover after thin holiday trade.
Silver was up 0.3 percent for the day at $30.01 an ounce.
Spot platinum rose 0.2 percent to $1,492.06 an ounce, while spot palladium dropped 1.3 percent to $631.97 an ounce.
Stock indices
The S&P 500 closed at a five-month high for the third day on Thursday but had difficulty extending gains in the face of lackluster economic data and another European bond market test.
In its fourth day of gains, the S&P 500 has risen 1.4 percent, but it's added only 0.3 percent since Tuesday as investors look for more convincing evidence of an improving U.S. economy, solid corporate earnings and progress toward resolving the euro zone's debt crisis.
The Dow Jones industrial average gained 21.57 points, or 0.17 percent, to 12,471.02.
The Standard & Poor's 500 Index added 3.02 points, or 0.23 percent, to 1,295.50.
The Nasdaq Composite Index rose 13.94 points, or 0.51 percent, to 2,724.70.
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