New claims for unemployment insurance in the US rose by 19,000 last week to 479,000, ahead of expectations for a result near 455,000. The four-week average rose by 5,250 to 458,500. And US chain store sales were up 2.8pct in July on a year ago after a 3pct annual increase in June.

The Bank of England and European Central Bank kept rate settings on hold as expected.

European shares were again mixed on Thursday. Banks fell on continued concerns about the broader health of financial systems. The FTSEurofirst index fell by 0.2pct with the UK FTSE down 0.4pct while the German Dax was higher by just 2 points or less than 0.1pct. But miners rose in London trade with BHP Billiton up 0.8pct and Rio Tinto up 0.5pct.

US sharemarkets ended slightly lower in thin trade as investors awaited the monthly jobs report. The Dow Jones fell by 5pts or 0.1pct with the S&P 500 down 0.1pct and the Nasdaq lost 10pts or 0.5pct.

US longer-term treasuries rose on Thursday (yields lower) as investors squared positions ahead of Friday´s non-farm payrolls report. US 2yr yields fell 3pts to 0.54pct and US 10yr yields fell by 5pts to 2.90pct.

Major currencies were slightly firmer against the greenback in European and US trade ahead of the US jobs report. The Euro held between US$1.3120 and US$1.3230, ending US trade near US$1.3185. The Aussie dollar held between US91.15c and US91.60c, ending US trade near US91.55c. And the Japanese yen lifted from 86.30 yen per US dollar to JPY85.70, ending US trade near its strongest levels.

US crude oil prices eased modestly on Thursday. While traders elected to square positions ahead of the US jobs report, the weaker-than-expected jobless claims data also weighed on sentiment. The Nymex crude oil contract fell by US46c to US$82.01 and London Brent crude fell by US59c to US$81.61 a barrel.

Wheat prices continued to surge after Russia placed a temporary ban on exports to conserve supplies in the wake of its worst drought in 38 years. September wheat rose by its 60c daily limit to US$7.85-3/4 per bushel.

Base metal prices reversed Wednesday´s gains on the London Metal Exchange on Thursday as investors awaited the US jobs report. Metals fell between 0.3-2.7pct with lead doing worst. And the Comex gold price traded quietly but ended up for the seventh straight session, lifting US$3.40 an ounce to US$1,199.30. Gold traded from US$1,192 to US$1,202.80 an ounce.

Ahead: In Australia, the Reserve Bank releases its Statement on Monetary Policy. In the US non-farm payrolls data is released.