According to the ADP survey, US private sector payrolls rose by 325,000 in December - well above expectations for a 178,000 increase and the biggest gain in the 11-year history of the survey. The US ISM services gauge also rose from 52.0 to 52.6 in December with the new orders index and employment index both higher. US claims for unemployment insurance (jobless claims) fell by 15,000 to 372,000 in the latest week.

Euro-zone industrial new orders jumped by 1.8pct in October, following a 7.8pct slump in September. The UK services gauge rose more than expected in December, lifting from 52.1 to a five-month high of 54.0.

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The European Financial Stability Fund raised EUR 3.0billion, after attracting offers of close to EUR 4.5billion for its latest 3-year bond. France issued EUR 4.02billion of 10-year bonds. The yield was a little higher than a month ago at 3.29pct, with bid-cover weaker at 1.64 versus 3.05 at the previous auction.

European shares eased modestly on Thursday with continued jitters about sovereign funding offset by stronger US economic data. Shares in Italy´s UniCredit fell by 17.3pct. The FTSEurofirst index fell by 0.8pct with the UK FTSE down 0.8pct and German Dax was lower by 0.3pct.

US sharemarkets recovered over the session after slumping at the open. Euro debt concerns dominated, weighing on banks, while bankruptcy fears continued to haunt Kodak. But economic data boosted investor sentiment. At the close of trade, the Dow Jones was down by 3 points or less than 0.1pct after being down 135pts in early trade. The S&P 500 was up 0.3pct and the Nasdaq was higher by 21pts or 0.8pct.

US treasuries were little-changed on Thursday as traders awaited the pivotal non-farm payrolls report. US 2yr yields were flat at 0.26pct and US 10yr yields rose by 1pt to 1.99pct.

Major currencies fell against the US dollar in European trade but stabilised in the US session as US shares rebounded. The Euro fell from US$1.2940 to around US$1.2775 and was near US$1.2790 in late US trade. The Aussie dollar eased from highs around US103.35c to US102.35c, and was around US102.60c in late US trade. And the Japanese yen eased from 76.70 yen per US dollar to near JPY77.20, and was near JPY77.20 in late US trade.

World crude oil prices fell on Thursday as a firmer US dollar offset stronger US economic data and on-going tensions between western nations and Iran. Nymex crude oil fell by US$1.41 or 1.4pct to US$101.81 a barrel and London Brent crude fell by US96c or 0.6pct to US$112.74 a barrel.

Base metals were mixed on Thursday. Tin rose 1.3pct and copper rose slightly but other metals eased 0.6-2.6pct. Meanwhile the gold price rose as Euro concerns offset a firmer greenback with the Comex February gold price up by US$7.40 or 0.5pct to US$1,620.10 an ounce.

Ahead: In Australia, no major economic data is released. In the US, the non-farm payrolls (employment) report for December is released.