What you need2know

SPI futures up 11 points, or 0.28%, to 5404 at 6am Sydney time on Friday.

AUD +0.28% to US72.18¢

On Wall St, Dow -0.08%, S&P 500 +0.06%, Nasdaq +0.2%

In Europe, Stoxx 50 +0.31%, FTSE 100 +0.04%, CAC +0.69%, DAX + 0.66%

In New York, BHP -0.22%, Rio -0.6%

Spot gold -0.32% to $US1220.1 an ounce at 6am Sydney time

Brent crude -0.6% to $US49.42 a barrel at 6am Sydney time

Iron ore -1.84% to $US49.48 a tonne at 6am Sydney time.

What's on today

Local data: RBA's Debelle speaks on panel at 8.30am

Overseas data: China April industrial profits; Japan national CPI April; UK consumer confidence May; US first-quarter GDP 2nd estimate, May consumer sentiment

Currencies

The Australian dollar was fetching US72.18¢ at 6am on Friday morning.

The US dollar fell against the euro, yen, and franc on Thursday after US economic data showed weakness in business spending plans, denting expectations for a Federal Reserve interest rate increase in June or July.

The US dollar index, which measures the greenback against a basket of six major rivals, hit 94.938, its lowest level in eight days. The euro rose more than half a percentage point to a session high of $US1.1216, rebounding from Wednesday's 10-week low of $US1.1126.

Commodities

Oil pared earlier gains after touching $US50 a barrel for the first time in more than six months as US crude supplies and production declined.

Futures were little changed in New York after earlier climbing to $US50.21, the highest price since October 9. Brent crude topped $US50 for the first time since November before also erasing gains. US stockpiles shrank more than expected last week, government data showed, while supplies have also been curtailed in Nigeria, Venezuela and Canada.

"You have to expect headwinds when you reach $US50," said Thomas Finlon, director of Energy Analytics Group in Wellington, Florida. "It's a big psychological barrier and could have a fundamental impact if we stay at this level. There could be an increase in domestic production."

United States

US stocks fluctuated after their strongest rally in almost three months, as mixed data offered little clarity on whether the economy is strengthening enough to withstand higher interest rates as early as next month.

Equities struggled for direction as investors stepped back to survey a two-day advance that added nearly 360 points to the Dow Jones Industrial Average and lifted the S&P 500 more than 2 per cent in the gauge's first back-to-back gains in two weeks. Banks and commodity producers were among the biggest losers Thursday after helping to lead this week's climb.

The S&P 500 rose less than 0.1 per cent to 2091.49 at 2.33pm in New York, after closing Wednesday at a four-week high. The Dow lost 17.71 points, or 0.1 per cent, to 17,833.80. The gauge is celebrating its 120th anniversary, with only one of its original 12 constituents - General Electric Co - still in the index. The Nasdaq Composite Index added 0.2 per cent. Trading volume in S&P 500 shares was 16 per cent below the 30-day average for this time of day.

Europe

European stocks were little changed at their highest level in a month as advances in carmakers and miners offset a drop in banks.

ArcelorMittal jumped 7.1 per cent, leading commodity producers higher, on speculation the European Commission may widen an investigation on dumping of steel imports to include more countries. Auto-related shares posted the biggest gains among industry groups, with PSA Peugeot Citroen and Renault SA up more than 2.5 per cent. Banco Popular Espanol SA plunged 27 per cent after saying it will raise about 2.5 billion euros ($US2.79 billion) by selling new shares.

The Stoxx Europe 600 Index added 0.1 per cent at 4.34pm in London, erasing an earlier slide of as much as 0.3 per cent. The benchmark advanced 3.5 per cent in the past two sessions, buoyed by optimism that the US economy can withstand a potential rate increase in June.

What happened yesterday

Australian shares managed to eke out a gain on Thursday despite failing again at the 5400 hurdle, with energy stocks leading the way as Brent crude oil reached $US50 a barrel for the first time since November.

Although peaking early at an intraday high of 5402.4, the benchmark S&P/ASX 200 index quickly dipped into the red before recovering through the reset of the session to close up 16 points, or by 0.3 per cent, at 5388.1. The broader All Ordinaries lifted 0.3 per cent to 5451.9.

Data from the Australian Bureau of Statistics revealed business investment fell by 5.2 per cent in the March quarter, which was worse than forecast.

However, Macquarie division director Martin Lakos said the result had little impact on the market. "We didn't didn't see the needle move," he said. "The market softened but not dramatically so."