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Wall Street gains on oil, Apple

Tuesday, 17 May 2016 06:26:25 | Thuy Ong

Business magnate Warren Buffet has revealed a $US1 billion stake in Apple. (AFP: Yoshikazu Tsuno)

Wall Street has ended higher, helped by a surge in oil prices and as business tycoon Warren Buffett revealed a $US1 billion stake in Apple.

Apple jumped 3.7 per cent to $US93.88, recovering from its lowest level since 2014 touched last week after fears sales growth will continue to slow.

Mr Buffett's multinational corporation Berkshire Hathaway made the investment in the first quarter, before Apple reported its first quarterly revenue decline in 13 years.

"[Apple] is stunningly cheap, and it has a massive pile of cash," Steve Wallman, founder of Wallman Investment Counsel told Reuters.

"Apple is not getting credit for research and development it is doing behind the scenes."

On Wall Street, the Dow Jones Industrial Average added 1 per cent to 17,710.

The Nasdaq jumped 1.2 per cent to 4,775, while the S&P 500 gained 1 per cent to 2,067.

Overnight, European shares ended steady after recouping earlier losses.

In London, the FTSE 100 gained 0.2 per cent, while in Paris the CAC 40 slipped 0.2 per cent.

Locally, shares are set for an upbeat start with the futures ASX SPI 200 up 0.9 per cent to 5,393.

Elsewhere, the Australian dollar gained 0.4 per cent to 72.9 US cents.

Against other major currencies, the Australian dollar is buying 79.4 Japanese yen, 50.6 British pence, 64.4 euro cents and $NZ1.073.

On commodities markets, oil prices hit six-month highs as worries about a global supply glut receded, and investment bank Goldman Sachs raised its price forecast for oil in the second half to $US50 a barrel, up from a March estimate of $US45 a barrel.

West Texas crude gained 3.3 per cent to $US47.72 a barrel.

Spot gold slipped 0.6 per cent to fetch $US1,274 an ounce.

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