US wholesale inventories rose by a higher-than-expected 1pct in December to $430.5 billion - its highest level in almost two years. Business sales rose by a more sedate 0.4pct against analyst expectations of a 1.3pct rise.

US jobless claims fell by 36,000 to a seasonally adjusted 383,000 in the past week - marking the lowest reading since July 2008. Those people remaining on unemployment benefits after drawing an initial week of aid fell by 47,000 to 3.89 million.

[Get this delivered to your inbox for FREE. Subscribe to our daily Markets Newsletter.]

European shares fell for the third straight day on Thursday. Disappointing corporate results from the likes of Credit Suisse (down 5.8pct), and Air France-KLM (down 7.5pct) gave investors an opportunity to lock in recent gains. Rio Tinto shed 2.4pct despite upping its dividend and announcing a $5billion share buyback. Energy stocks recovered from lows following media reports that Egypt´s president Mubarak might step down. The FTSEurofirst index fell by 0.2pct, with the UK FTSE lower by 0.5pct while the German Dax rose 0.3pct.

US sharemarkets eased on Thursday. Cisco Systems (down 14.3pct) set a negative tone for equities after giving a weak outlook and reported eroding margins. Hopes of a possible resolution in Egypt to the political unrest, helped equities pare earlier losses. At the close of trade, the Dow Jones index was down 10pts or 0.1pct but the S&P 500 rose 0.1pct and the Nasdaq was higher by 1pt or 0.1pct.

US treasuries fell on Thursday (yields higher) renewing the recent sell-off. Inflationary pressures were once again in focus, given the improving economic data. US 2yr yields rose by 2pts to 0.83pct and US 10yr yields rose by 2pts to 3.70pct.

Major currencies fell against the greenback in overnight trade. The Euro fell from near US$1.3705 to US$1.3575 and was holding near US$1.3595 in late US trade. The Aussie dollar traded between US100.75c and US100.10c, and was near US100.40c in late US trade. And the Japanese yen eased from 82.50 yen per US dollar to around JPY83.35, and was near JPY83.25 in late US trade.

US crude oil prices ended modestly higher after a volatile trading session. The US dollar strength limited price gains and offset the better than expected labour market data. The Nymex crude oil contract rose by US2c to US$86.73 a barrel. London Brent crude fell by US69c to US$101.13 a barrel.

Base metal prices eased on the London Metal Exchange on Thursday as investors chose to take profits, given the stronger US dollar and subdued Chinese buying. And the Comex gold futures price fell US$3.00 an ounce to US$1,362.50.

Ahead: In Australia, Reserve Bank Governor Glenn Stevens delivers his Parliamentary Testimony. In the US, trade data and the University of Michigan confidence Index are released.
[Get this delivered to your inbox for FREE. Subscribe to our daily Markets Newsletter.]