World stock markets scaled fresh highs yesterday, with key United States indexes lifted by rosy retailer results, while the US dollar dipped and oil prices fell after top oil producers extended output cuts for a shorter period than expected.

The US benchmark S&P 500 index and Nasdaq Composite opened at record highs, while the VIX “fear gauge” of expected volatility in the S&P 500 opened at 9.82, its lowest since May 10.

Gains were propelled by sturdy sales data at electronics retailer Best Buy, lifting its shares as much as 17 per cent as top gainer on the S&P 500. Robust results also boosted Tommy Hilfiger-owned PVH by seven per cent.

Oil prices fell as Opec prepared to extend supply curbs by nine months to March 2018 to drain a glut that has depressed markets for almost three years.

Analysts said this was a shorter period of time for such limits than some market participants had expected.

The Dow Jones Industrial Average rose 90.95 points, or 0.43 per cent, to 21,103.37, the S&P 500 gained 12.09 points, or 0.50 per cent, to 2,416.48 and the Nasdaq Composite added 42.81 points, or 0.69 per cent, to 6,205.83.

US share indexes were boosted a day earlier after minutes from the Federal Reserve’s May 2-3 meeting signalled its policymakers would hold off on raising interest rates soon until it is clear that a recent US economic slowdown is temporary.

Federal funds futures imply traders see an 80.9 per cent chance of a quarter point rate rise in June.

US crude fell 1.15 per cent to $50.77 per barrel and Brent was last at $53.48, down 0.89 per cent on the day.

“A nine-month extension of the output cuts is already baked into prices,” said Olivier Jakob, energy markets analyst at Swiss consultancy Petromatrix.

“This shows there’s not much more OPEC can do.”

In Europe, the pan-European FTSEurofirst 300 index was little changed, losing just 0.03 per cent. The pan-European STOXX 600 index was led lower by basic resources and energy companies earlier in the day; it still held close to 21-month highs.

Steelmakers were hit after iron ore prices fell for a third day, on concern over reduced Chinese demand.

MSCI’s gauge of stocks across the globe gained 0.47 per cent.

In the currency markets, the euro edged down 0.04 per cent to $1.1213, pulling further away from Tuesday’s six-and-a-half month high of $1.1268.

The dollar index, which measures the greenback against a basket of major currencies, fell 0.09 per cent, as key currencies tracked the drop in oil prices.

United States bond yields dipped ahead of a $28 billion sale of seven-year notes. The benchmark 10-year yield was down 1.6 basis point yesterday at 2.25 per cent.

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