ABC

Stocks on Wall Street have closed higher in a session dominated by concerns about the staying power of the seven-month rally and some positive economic data.

The Dow Jones Industrial Average closed up 76 points at 9,789. The S&P 500 added five points to 1,041.

The Australian dollar was fighting its way back towards yesterday's close.

At 9:30am (AEDT) it was worth 90.37 US cents, 0.6118 euros, 81.63 Japanese yen, 55.12 pence Sterling and $NZ1.26.

Spot gold was slightly higher at $US1,059.15 an ounce and West Texas Crude is stronger at $US77.78 a barrel.

Early in the session, manufacturing figures and pending home sales drove the US market higher. Several sectors then gave up their gains, only to stage a last minute rally.

Crude oil rebounded from last week's sell-off. The tech-heavy Nasdaq gained four points to 2,049.

The British market fared even better than its US counterpart, gaining 1.2 per cent. By the close, London's FTSE 100 Index had gained 60 points to 5,104.

Firmer commodity prices saw miners and oil producers making gains. Mining companies were also supported by that strong manufacturing data from the US.

A UK index of manufacturing activity rose at its fastest pace in two years and new orders increased at their fastest rate in almost six years.