Updated March 31, 2017 08:45:47

Photo: Investors cheered a recent report that showed the US economy grew faster than expected. (Flickr: f-l-e-x)

Wall Street has finished higher, driven by strong gains in financial shares as US investors digested key economic data overnight.

A recent report showed the US economy grew at a faster pace than previously expected in the final quarter of 2016.

The US Commerce Department said gross domestic product increased 2.1 per cent, revising up previous reported estimates of 1.9 per cent, due to firmer consumer spending.

Financial stocks lifted after the announcement as analysts interpreted the data as an encouraging sign of economic momentum.

Oil prices also rose during the session, trading above $US50 a barrel for the first time in three weeks, after Kuwait backed an extension of the Organisation of the Petroleum Exporting Countries' (OPEC) production cuts.

The decision coincided with comments made by OPEC Secretary-General Mohammed Barkindo, who told Reuters earlier this week that the OPEC and non-OPEC agreement was "gradually, but steadily working its way to restore balance to the oil markets".

According to an ANZ analyst note, the prospect of declines in US inventories over the coming weeks should see more "sustained support" return for crude oil prices.

European stocks were also up, led by gains in industrials and commodity shares.

Miners were among the strongest performers in the session, with Glencore, Rio Tinto and Anglo American all jumping by more than 1 per cent.

Locally, the market is on track to open marginally higher.

At 8:00am (AEDT), the Australia dollar was losing ground and was worth $US76.38.

At the same time, West Texas Crude oil was rising to $US50.25 a barrel, a barrel of Tapis was worth $US53.89 and spot gold is dropping to $US1,243 an ounce.

Topics: business-economics-and-finance, company-news, markets, currency, futures, stockmarket, united-states, australia

First posted March 31, 2017 08:40:04