US producer prices rose by a less than expected 0.7pct in March. Energy prices rose by 2.6pct in March, accounting for almost 90pct of the increase in wholesale prices. In the 12 months to March, producer prices rose by 5.8pct - the biggest gain in a year. Core producer prices (ex food & energy) gained a much more sedate 0.3pct with the annualised rate at 1.9pct.

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US initial jobless claims rose by 27,000 to 412,000 last week - well above expectations which had centred on a fall to 380,000. Those people remaining on unemployment benefits after drawing an initial week of aid fell from 3.738 million o 3.680 million.

European shares fell on Thursday as worries about rising global inflation hurt investor sentiment. The STOXX Europe Banks index gave back the previous sessions gains and more falling 1.4pct. The FTSEurofirst index fell by 0.5pct while the German Dax lost 0.4pct and the UK FTSE fell 0.8pct.

US sharemarkets were mixed on Thursday following the unexpected rise in jobless claims. A senate investigation of Goldman Sachs (down 2.7pct) added to the weakness. The S&P financial sector lost 0.9pct. However energy stocks received a boost from the higher oil price. The Dow Jones index rose by 14pts or 0.1pct, with the S&P 500 up just 0.11points, while the Nasdaq lost 1.3pts or 0.1pct.

US treasuries fell on Thursday in choppy trade (yields higher). The auction of $13 billion in 30yr notes found moderate demand and marked the last auction this week. US 2yr yields rose by 4pts to 0.77pct and US 10yr yields gained 4pts to 3.50pct.

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The US dollar fell against major currencies in overnight trade on Thursday as the weak economic data supported the view that the Fed will continue its US$600 billion QE policy to completion. The Euro hit early highs near US$1.4510 before falling to lows near US$1.4365, but did recover to close US trade near US$1.4490. The Aussie dollar rose from US104.70c to highs near US105.50c, ending near US105.40c. And the Japanese yen traded between 83.60 yen per US dollar and JPY82.95, closing US trade near JPY83.40.

US crude oil prices rose for the second straight session on Thursday. The Nymex crude oil contract rose by US$1 or 0.9pct to US$108.11 a barrel. The London Brent crude May contract which expired at the close of trade dipped by US52c to US$122.36 a barrel.

Base metal prices were mostly weaker on the London Metal Exchange on Thursday, with the exception of Aluminium which gained 0.1pct. Lead and Nickel posted the biggest declines. But the gold price rose supported by a weaker US dollar. The Comex gold futures price rose by US$16.80 an ounce to US$1,472.40.

Ahead: In Australia, no economic data is slated for release. In the US, consumer prices, capacity utilisation and industrial production are released. In China, retail sales, industrial production and inflation figures are expected.

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