At 7am (AEDT) on Thursday, the local unit was trading at 71.80 US cents, up from 70.21 cents on Wednesday.

And the Australian market looks set to open higher following a positive lead in New York and an overnight rise in the price of oil.

At 6.52am (AEDT) on Thursday, the share price index was up 22 points at 4,846.

The Dow Jones Industrial Average was up 115.80 points, or 1.11 per cent, at 16,269.34 in afternoon trading in New York, while the Standard & Poor’s 500 index was up 1.72 points, or 0.09 per cent, at 1,902.40.

The NASDAQ Composite index recovered most of its overnight losses to sit flat at 4,514.84.

In Australia, the market on Wednesday resumed its slide as heightened investor fears about global growth caused the sharpest daily fall in four months.

The benchmark S&P/ASX200 index was down 116.5 points, or 2.33 per cent, at 4,876.8 points.

The broader All Ordinaries index was down 113.2 points, or 2.24 per cent, at 4,930.8 points.

NEW YORK – US stocks have staged a late-day rally as an 8-per cent jump in oil prices lifted beaten-down energy shares and financials rebounded

The Nasdaq stayed weaker but ended well off the day’s lows.

Oil prices snapped a two-day rout as investors took advantage of a weaker US dollar. Comments by Russia’s foreign minister reignited hopes of a deal among oil producers to trim output.

The energy index jumped 4 per cent.

“Oil helped turn around the overall market. The market shot up like an arrow and then what you had was a lot of short covers,” said Robert Pavlik, chief market strategist at Boston Private Wealth in New York.

The Dow Jones industrial average ended up 183.12 points, or 1.13 per cent, to 16,336.66, the S&P 500 gained 9.5 points, or 0.5 per cent, to 1,912.53 and the Nasdaq Composite dropped 12.71 points, or 0.28 per cent, to 4,504.24.

The S&P materials was up 3.3 per cent, the day’s second-best performing sector. The S&P financial index ended down just 0.1 per cent after hitting its lowest in more than two years.

Stocks’ late-day rally reversed sharp losses in morning trading. US data showed the economy’s service sector expanded at a slower-than-expected rate, raising concerns that weakness in manufacturing was spreading to other areas of the economy.

LONDON – UK shares have fallen, pulled lower by financial stocks, with banks hitting their lowest levels in over four years and Hargreaves Lansdown among top fallers following a mixed earnings update.

Britain’s blue-chip FTSE 100 index closed down 1.4 per cent at 5,837.14 points on Wednesday, with banks among the top fallers.

The FTSE 350 Banking index fell 3.6 per cent, and is down around 19 per cent this year. The index hit its lowest level since November 2011.

Traders said that evaporating expectations that the US Federal Reserve might hike rates in March was hurting the sector, which sees interest margins squeezed and struggles to make money if rates are too low for too long.

In positive territory, however, were British mining stocks, as the price of copper advanced on improving China data showing that its services sector expanded at its fastest pace in six months in January.

Shares in Anglo American, Rio Tinto and Glencore climbed between 3.4 per cent to 8.5 per cent.

HONG KONG – A third consecutive day of oil price losses in Asia had weighed on regional stock markets.

“There is still a lot of vulnerability in stock markets and the euro remains quite strong, which is adding pressure on the ECB to take action,” said BNP Paribas European rate strategist Patrick Jacq.

MSCI’s broadest index of Asia-Pacific shares outside Japan fell 1.7 per cent.

Japan’s Nikkei closed down 3.2 per cent, hit by weak oil and a strong yen, wiping out almost all the gains it made after the BOJ became the latest major central bank to introduce negative interest rates.

Chinese shares dipped 0.4 per cent.

The Japanese yen, which tends to be bought by investors in times of risk aversion, was 0.2 per cent stronger on the day at 119.71 per dollar. It hit a six-week low of 121.70 per dollar after the BOJ’s policy meeting on Friday.

“Risk sentiment is pretty fragile, so we are seeing yen being supported,” ING currency strategist, Petr Krpata, said.

WELLINGTON – The S&P/NZX 50 Index dropped 46.7 points, or 0.8 per cent, to 6133.38.

LONDON – Lloyds Banking Group Plc says it will axe about 1585 jobs and close 29 branches as part of sweeping cuts it announced more than a year ago, aimed at reducing Europe’s second-biggest lender’s workforce by 9000.

British-based pharmaceuticals giant GlaxoSmithKline has posted a loss of STG428 million ($A876 million) for the fourth quarter of 2015 – compared with a profit of over STG1 billion for the same period a year earlier – as the company integrates new businesses.

BRUSSELS – Luxembourg, the tiny European Union state nestled between France, Germany and Belgium, has a big new goal – it wants to be a centre for space mining.

DETROIT, Michigan – Strong earnings in North America and China and a reversal of fortunes in Europe powered General Motors to a record net profit of $US9.7 billion ($A13.77 billion) last year.

WASHINGTON – A private survey says US services companies grew in January at the slowest rate in nearly two years.

MOSCOW – Russia is ready to meet the main oil producers within the Organisation of the Petroleum Exporting Countries (OPEC) if a consensus on such a meeting is reached with them, Russia’s foreign minister, Sergei Lavrov, has reportedly said.

ENERGY

US crude has settled up eight per cent after investors took advantage of a drop in the US dollar and earlier weakness in the crude price, despite weekly data showing a surprisingly large rise in US inventory.

Russia also repeated its willingness to take part in talks with OPEC producers to cut output.

US crude settled at $US32.28 a barrel, while benchmark Brent crude settled up 7.1 per cent to
$35.04 a barrel.

“We’re getting the rally in crude oil from the pounding that the dollar is taking,” said Robert Yawger, senior vice president of energy futures at Mizuho Securities USA.

PRECIOUS METALS

Gold has hit three-month highs as a slower US services sector and sinking US dollar prompts investors to seek shelter in assets perceived as safer as future Fed rate hikes appeared less likely.

US services sector activity slowed to a near two-year low in January, suggesting that economic growth weakened further at the start of the first quarter.

“Dollar weakness and the poor ISM number are the primary drivers this afternoon,” said Mark O’Byrne, research director of bullion dealer GoldCore in Dublin.

Spot gold was up 0.9 per cent at $US1,138.60 an ounce at 2:44 pm EST (0644 Thursday AEDT), having earlier touched its strongest since October 30 at $US1,145.60.

Gold, an asset that thrives on uncertainty, has gained more than 7 per cent since the start of 2016 on concerns over the growth outlook, especially in China, after losing 10 per cent in 2015.

Spot silver was up 2.3 per cent at $US14.62 an ounce, while palladium was up 4.5 per cent at $US510.88. Platinum was up 3.3 per cent to $US878.37.

BASE METALS

Copper has hit a one-month high as inventories decline, oil prices bounce and traders continue to reverse bets on falling prices ahead of the Lunar New Year break.

Also helping the metal, the US dollar tumbled as scepticism over rate hikes grew following weak US services data.

London Metal Exchange copper ended up 1.9 per cent at $US4,635 a tonne, having earlier risen to $US4,648, the highest since January 5, extending gains seen since mid-January when prices hit a six-year low.

Copper, primarily used in power and construction, was lifted by news that Chinese authorities plan to reduce the minimum down payment required for first- and second-time home buyers in most cities, a move aimed at clearing a housing glut.

ASX stocks to watch Thursday, February 4

BHP – BHP BILLITON

FMG – FORTESCUE METALS GROUP

RIO – RIO TINTO

Mining stocks could get a boost from stonger iron ore prices.

MQG

Macquarie Group announces its third quarter results

ORG – ORIGIN

OSH – OILSEARCH

STO – SANTOS

WPL – WOODSIDE PETROLEUM

Energy stocks could get a bounce after oil prices rebounded on the weaker US dollar, with WTI up eight per cent and Brent gaining 7 per cent.

TAH

Tabcorp unveils its first half results