US stocks climbed but other major world equity markets were little changed on Thursday ahead of a widely expected interest rate hike by the Federal Reserve next week, and oil resumed its slide due to persistent worries about weak demand and a supply glut.
Oil prices fell to near seven-year lows and overall markets were more subdued as investors looked ahead to the Fed's December 15-16 policy meeting.
US crude fell as worries over a global glut persisted and prices were seen as vulnerable to further weakness in the run-up to year-end.
Brent crude was last down 1.5 per cent at $39.52 a barrel. US crude settled down 1.1 per cent at $36.76.
"People are focused on two things right now: they're looking at commodity prices, they're looking at interest rates, and they're tying to figure out how that is going to impact growth heading into next year," said Bryan Novak, portfolio manager at Astor Investment Management in Chicago.
MSCI equity index
MSCI's all-country world equity index, which tracks the shares in 45 nations, was last down 0.1 per cent.
The Dow Jones industrial average rose 0.47 per cent to 17,574.75, the S&P 500 gained 0.23 per cent to 2,052.23 and the Nasdaq Composite rose 0.44 per cent to 5,045.17.
European shares steadied after touching a two-month low, with retailers and technology firms under pressure as commodity shares stabilised. Europe's broad FTSEurofirst 300 index fell 0.2 per cent to 1,428.08.
Dollar index up
The dollar rose as markets refocused on the expected US rate increase, moving up from one-month lows against the euro and yen. The dollar index, which tracks the greenback versus a basket of six currencies, was last up 0.6 per cent at 97.915.
"You are seeing people become more convinced that the Fed is going to move on autopilot," said Karl Schamotta, director of FX strategy and structured products at Cambridge Mercantile Group in Toronto.
US Treasury yields
US long-dated Treasury debt yields edged lower in thin trading, weighed down by tumbling oil prices, which suggested inflation would remain benign.
Benchmark 10-year Treasury notes were last down 4/32 in price to yield 2.238 per cent. US 30-year yields were up 1/32 in price to yield 2.97 per cent.
Spot gold prices fell $1.51 to $1,071.30 an ounce.