US new home sales fell 2.1pct to a seasonally adjusted annual rate of 319,000 in May. The supply of new homes on the market for sale fell to record low of 166,000. The median price of new homes rose from $217,000 to $222,600 - marking the first increase since December, however prices are still down 3.4pct on a year ago.

[Sign up to get reports daily in your inbox]

US jobless claims lifted by 9,000 to 429,000 last week, against expectations for a fall in claims to 415,000.

European shares fell sharply on Thursday to a fresh three month closing low. The banking sector exposed to Greece debt was the biggest casualty, with the STOXX Europe 600 Banking Index falling 2.7pct. The FTSEurofirst index fell by 1.5pct with the German Dax lower by 1.8pct and the UK FTSE down 1.7pct.

US sharemarkets closed off session lows on Thursday, following a Reuters report that suggested Greece may have agreed to a five-year austerity plan. Sources close to the deal said that a few remaining technical details would be finalised on Friday. The Dow Jones fell by 60pts or 0.5pct with the S&P 500 down almost 4pts or 0.3pct and the Nasdaq gained 18pts or 0.7pct.

US treasuries rallied (yields lower) on Thursday as the sell-off in equities drove demand for safe-haven assets. The late breaking new that Greece had reached a five-year austerity plan provided little change to treasuries. US 2yr yields fell 3pts to 0.346pct and US 10yr yields fell by 6pts to 2.913pct.

The US dollar rallied against major currencies for a second straight session on Thursday but gains were curbed after Greece sealed a deal with the EU and IMF on a five year austerity plan. The Euro fell from highs near US$1.4305 to US$1.4130, ending US trade near US1.4260. The Aussie dollar fell from highs near US105.60c to US104.55c, ending US trade near US105.25c. And the Japanese yen traded in between 80.35 yen per US dollar and around JPY80.80 ending US trade near JPY80.55.

US crude oil prices fell on Thursday after the IEA released emergency oil reserves for only the third time in history. The IEA confirmed that it will release 60 million barrel of government held stocks, immediately increasing world oil supply by 2.5pct next month. The Nymex crude oil contract fell by US$4.39 or 4.6pct US$91.02 a barrel and London Brent crude fell by US$6.95 to US$107.26 a barrel.

Base metal prices were mixed on the London Metal Exchange on Thursday. Copper fell by 0.6pct as traders remained concerned about the prospects for global growth. US dollar strength also added to the weakness. And the gold price fell for the first time in eight session. Comex gold fell by US$32.90 an ounce to US$1,520.50.

Ahead: In Australia, no economic data is released. RBA Assistant Governor Lowe speaks in Adelaide. In the US, durable goods orders and GDP data are released.

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