Australia

Australian shares are positioned to rise at open, as Wall Street continues to struggle with holding gains.

ASX futures were 21 points or 0.28% higher at 7491 as of 8:00am AEDT on Friday, pointing to a rise at open.

US stocks were mostly higher on Thursday before trimming some earlier gains in midday trading, as the S&P 500 headed for its first green session of 2024, while the technology-heavy Nasdaq Composite still struggled to snap a four-day losing streak after kicking off the new year with a rough start.

The S&P 500 edged up Thursday after sagging earlier in the week. Some believe how stocks fare in January sets the tone for the rest of the year, but markets are also coming off of a strong fourth quarter.

In commodity markets, Brent crude oil fell 0.74% to $US77.67 a barrel, Gold gained 0.90% to $US2,044.18 and Iron ore fell 1.2% to $US140.95 a tonne.

In local bond markets, yields on Australian 2 Year government bonds was unchanged at 3.81% and the 10 Year yield was also flat at 4.05%. Overseas, the US Treasury notes were mostly positive, with the yield on 2 Year edging up to 4.38% and the 10 Year yield gaining to 3.99%

The Australian dollar was slightly lower at 67.01 US cents from its previous close of 67.29. The Wall Street Journal Dollar Index, which tracks the US dollar against 16 other currencies was up at 96.89.

Asia

Chinese shares ended lower, with the benchmark Shanghai Composite Index declining 0.4% to 2954.35. The Shenzhen Composite Index was down 0.8% and the ChiNext Price Index lost 1.8%. Liquor and semiconductor stocks led losses. Kweichow Moutai dropped 1.5% and Shanxi Xinghuacun Fen Wine Factory slipped 1.6%. SMIC and Will Semiconductor fell 1.1% and 0.8%, respectively. China Life Insurance shed 4.5%, its largest one-day percentage change since October 2023. Meanwhile, energy stocks gained. PetroChina rose 2.1% and Cnooc was up 1.1%.

Hong Kong shares closed flat as gains in the energy and tech sectors offset losses in consumer products and property stocks. Foreign investors need more time to regain their confidence in the Chinese economy, Maybank's head of retail research Sonija Li said, adding that "property risk and weaker consumption are key to watch." Haidilao International led losses, falling 3.9%. Developer China Hongqiao Group and Country Garden Services were down 2.6% and 2.5%, respectively. Energy and tech stocks led gains. PetroChina and China Shenhua Energy gained 2.7% and 2.0% each. Baidu was up 2.0% and Trip.com rose 1.9%. The benchmark Hang Seng Index closed flat at 16645.98 and the Hang Seng Tech Index was up 0.2%.

Japan's Nikkei Stock Average fell 0.5% to close at 33288.29 on its first trading day of 2024, in line with Wall Street losses overnight. There was disappointment about the FOMC meeting minutes, which didn't offer much detail on the rate-cut timeline while citing an "unusually elevated degree of uncertainty" on the policy path, said IG market analyst Yeap Jun Rong in an email. Losses on the benchmark index were led by technology companies, with Lasertec slipping 5.3%, Tokyo Electron dropping 4.9% and Advantest falling 3.75. The 10-year JGB yield was unchanged at 0.615%.

Indian shares closed higher after falling for two straight sessions. Investors continued to gauge the Fed's rate-cut trajectory following its December meeting minutes, which cited lower inflation risks. Utilities and finance stocks led gains. Bajaj Finance gained 4.4% and Prudent Corporate Advisory Services added 3.5%. NTPC was 3.5% higher and Tata Power rose 3.5%. Auto stocks fell broadly, with Mahindra & Mahindra and Maruti Suzuki India down 0.8% each. HCL Tech was the worst performer on the benchmark index, declining 1.2%. The benchmark Sensex ended 0.7% higher at 71847.57.

Europe

European stocks rose as investors remain upbeat despite resurgent inflation and interest-rate concerns. Despite a more hawkish set of Fed minutes, markets have managed to make gains on both sides of the Atlantic, IG said. "While the ADP payroll report came in solidly above expectations, it nonetheless represented a slowdown from November's figure, reinforcing hopes the Fed is on course to cut rates in the first half of the year," IG analyst Chris Beauchamp wrote. "But the inflation dragon isn't yet slain, a point confirmed by today's German inflation figures." The Stoxx Europe 600 advanced 0.7% and the CAC 40 and DAX gained 0.5%. Oil majors rallied despite a 2% fall in Brent crude to $76.68 a barrel. The Dow rose 0.6%.

The FTSE 100 index closed Thursday up 0.5% to 7723 points, in line with global peers and mainly supported by oil-exposed stocks. Shares of retailer Next PLC outperformed the blue-chip index, up 5.8%, after the retailer upgraded its guidance for the fifth time in the last 12 months. On the opposite side, sports fashion retailer JD Sports shares slumped 23% to 13-month lows after a profit warning due to worse-than-expected pre-Christmas trading. "Given the outsized market reaction seen from today's profits warning from JD Sports, the next few days are likely to be a key test for other U.K. retailers in the coming days with a particular focus on the likes of Marks & Spencer," CMC chief market analyst Michael Hewson said in a note.

North America

US stocks were mostly higher on Thursday before trimming some earlier gains in midday trading, as the S&P 500 headed for its first green session of 2024, while the technology-heavy Nasdaq Composite still struggled to snap a four-day losing streak after kicking off the new year with a rough start.

The S&P 500 edged up Thursday after sagging earlier in the week. Some believe how stocks fare in January sets the tone for the rest of the year, but markets are also coming off of a strong fourth quarter.

Bond yields rose after new data showed the labor market remains resilient. Next up tomorrow: The monthly report on nonfarm payrolls, which tends to be more closely watched on Wall Street.

Stocks were mixed. The S&P 500 was climbing after three straight days of declines. The Dow industrials also gained. The Nasdaq Composite fluttered between gains and losses, after falling for four straight days.

On the earnings front, shares of Conagra and Walgreens were both lower after they released their quarterly reports.

Bond yields resumed their climb. The yield on the 10-year U.S. Treasury note crept closer to 4%, after settling at 3.905% Wednesday.

The ADP employment report showed the private sector added 164,000 jobs in December, above the 130,000 expected.

Weekly jobless claims came in at the lowest level since mid-October, suggesting the labor market remains strong.