US jobless claims held steady at 351,000 last week - marking the lowest reading since March 2008. The number of people receiving benefits after drawing an initial week of aid fell by 52,000 to 3.39 million. The Kansas City Fed Manufacturing Index rose from 7 to 13 in February- suggesting an ongoing expansion. The survey included responses from 109 manufacturing plants in the region. US home prices rose 0.7pct in December.

European shares were mostly weaker on Thursday after negative growth forecasts for the Euro Zone and poor results from some of the region´s lenders added to investor caution. The European Commission forecast that economic output will contract by 0.3pct this year, reversing an earlier forecast of 0.5pct growth for 2012. The STOXX 600 Banking Index fell 0.7pct. The FTSEurofirst index fell by 0.2pct while the UK FTSE rose by 0.4pct and the German Dax lost 0.5pct.

US sharemarkets recorded modest gains on Thursday. The ongoing improvement in the US labour market supported stocks but was unable to convincingly break above key resistance levels. According to Thompson Reuters of the 446 companies in the S&P 500 that have reported earnings 63pct topped analyst estimates. With an hour and half of trade left, the Dow Jones index was up 38 points or 0.3pct. The S&P 500 was up 0.3pct and the Nasdaq rose by 15pts or 0.5pct.

US treasury prices rose on Thursday (yields lower), following strong demand in a $29 billion auction of 7yr notes. US 2yr yields fell by 1pt to 0.301pct and US 10yr yields fell by 3pts to 1.983pct.

The Euro rallied against the greenback in overnight trade on Thursday, as the better than expected German Ifo data offset the downward revision to EU growth forecasts. The Euro rose from US$1.3250 to highs near US$1.3340, and was near US$1.3335 in late US trade. The Aussie dollar rose from lows around US106.40c to just above US107.10c, and was near US106.75c in late US trade. And the Japanese yen traded in a tight range between 80.00 yen per US dollar to JPY80.30 and was near JPY80.10 in late US trade.

Benchmark crude oil prices were higher on Thursday - prompting concerns that high oil prices would cripple the global economic recovery. US Nymex rose by US$1.36 to US$107.86 a barrel while London Brent crude rose by US0.73c to US$123.80 a barrel.
Base metal prices were mixed on Thursday. Tin and lead recorded small gains and other metals fell between 0.3-0.8pct. And the gold price rose in a choppy session with the Comex April gold up by US$13.30 to US$1,784.60 an ounce.

Ahead: In Australia, the Reserve Bank Governor delivers his semi-annual testimony to the House of Reps Standing Committee on Economics. AGL Energy, Crown and Air New Zealand are amongst those reporting results today. In the US new home sales figures and the University of Michigan confidence index are released.