The US economy grew at an unrevised 1.8pct annualised pace in the March quarter. Economists had expected a lift in the growth rate to 2.2pct. And new claims for unemployment insurance rose by 10,000 to 424,000 in the latest week, above forecasts centred on 404,000.

[Sign up to get reports daily]

European shares were mixed on Thursday with some investors disappointed by US economic data. There were also doubts whether the IMF would release its next tranche of funds to Greece. But miners were generally higher with BHP-Billiton up 0.8pct in London trade while Rio Tinto was up less than 0.1pct. The FTSEurofirst index fell by 0.1pct but while the German Dax fell by 0.8pct, the UK FTSE was actually up by 0.2pct.

US sharemarkets posted modest gains on Thursday. While economic data was softer than expected, corporate results buoyed investor sentiment. Shares in luxury goods retailer Tiffany & Co soared by 8.6pct after posting better-than-expected sales in the US and Japan. At the close, the Dow Jones was higher by 8pts or 0.1pct with the S&P 500 up 0.4pct and the Nasdaq gained 21.5pts or 0.8pct.

US treasuries rose on Thursday (yields lower) as weaker-than-expected economic data suggested inflationary pressures would remained contained. And doubts on IMF aid to Greece added to safe-haven flows to US government bonds. There was strong demand for a $29 billion auction of seven-year notes. US 2yr yields fell by 6pts to 0.488pct and US 10yr yields fell by 8pts to 3.055pct.

The US dollar was mixed against major currencies on Thursday. The Euro fell from highs near US$1.4200 to US$1.4070, ending US trade near US$1.4130. The Aussie dollar rose from lows near US105.65c to US106.40c before ending US trade near its highs. And the Japanese yen lifted from 82.00 yen per US dollar to JPY81.15, ending US trade near JPY81.30.

US crude oil prices fell by just over 1pct on Thursday, restrained by weaker-than-expected economic data in the US. The Nymex crude oil contract fell by US$1.09 or 1.1pct to US$100.23 a barrel. But US gasoline prices rose for a fifth straight day supported by production problems by refineries in Illinois. And in London Brent crude rose slightly by US12c to US$115.05 a barrel.

Base metal prices were mixed on the London Metal Exchange on Thursday. Aluminium rose 1.2pct and zinc rose 0.7pct but other metals fell 0.5-2.9pct with tin and nickel faring worst. And the gold price followed oil lower with Comex gold futures down by US$3.90 an ounce to US$1,522.80.

Ahead: In Australia no major economic data is expected. In the US, private income/spending data, pending home sales and consumer sentiment data are released. G8 finance ministers prepare to meet.

More from IBT Markets:
Subscribe to get this delivered to your inbox daily
Follow us on Facebook.
Follow us on Twitter.