A choppy lead from overseas markets overnight on ongoing oil price volatility has not helped, Phillip Capital senior client adviser Michael Heffernan says.

He said investors were playing it safe ahead of the US non-farm payrolls on Friday night, Australian time, as well as taking stock of Thursday’s strong rally.

The benchmark S&P/ASX200 index closed more than two per cent higher on Thursday in the wake of strong oil price rallies.

“There’s big data coming out tonight in the US,” Heffernan said.

“But, I also think the market is taking a breath after it had the biggest rise for the year yesterday, a day after the biggest fall for the year.”

He said the miners were the best performers after resources stocks rallied on overseas markets overnight.

At 10.30am (AEDT), BHP was up 36 cents at $15.81, while Rio Tinto had gained 58 cents to $40.91.

The big four banks were lower with National Australia Bank down 25 cents at $26.62, ANZ 20 cents lower at $24.10, Westpac 30 cents worse off at $30.18 and Commonwealth Bank down 53 cents at $76.83.

Media giant News Corp shed $1.03, or 5.72 per cent, to $16.98 after its second quarter earnings fell 20 per cent on lower advertising revenue in the news division.

REA Group, the company behind realestate.com.au, was down 40 cents at $50.82 despite a 28 per cent rise in its half year profit.At 8.45am (AEDT) on Friday, the share price index was down 14 points at 4,919.

In local economic news on Friday, the Reserve Bank of Australia is due to release its Statement on Monetary Policy, while the Australian Bureau of Statistics releases December retail trade figures.

And, the Australian Industry Group/Housing Industry Association performance of construction index (PCI) data for January is also due out.

In equities news, News Corp is expected to post second quarter earnings update, Whitehaven Coal, REA Group and NBN Co are slated to release half year results and Genworth Mortgage Insurance will post full year results.

The Australian dollar has breached 72 US cents after the greenback suffered a fourth straight day of losses.

At 8.45am (AEDT) on Friday, the local unit was trading at 71.96 US cents, up from 71.72 cents on Thursday.

NEW YORK – Wall Street is higher following a choppy trading session ahead of Friday’s key jobs figures, as oil prices pared earlier gains and fell into the red.

Federal fund futures indicate traders no longer expect a Fed rise in 2016 andt he US dollar index hit 96.25, its lowest level in more than three months.

Data showed that weekly jobless claims rose more than expected, non-farm productivity fell in the fourth quarter at its fastest pace in more than a year and new orders for US factory goods also fell in December by the most in a year.

“In the short term, we really need to see a decent payroll number tomorrow and for earnings season to conclude with no major surprises,” said Bill Merz, investment strategist at US Bank Wealth Management.

“More importantly, investors need to start feeling as though oil is stabiliSing or at least nearing a bottom before the volatility in the market can subside.”

LONDON – Britain’s top share index have rallied, rebounding from the previous session’s falls after a drop in the US dollar boosted commodity prices and gave a lift to mining and oil shares.

The rally came as expectations for a US Federal Reserve rate rise evaporated.

That sent the US dollar tumbling, making dollar-priced crude oil and metals cheaper for holders of other currencies.

The rally in oil prices came even after data showed the crude market remained oversupplied.

HONG KONG – Asian stocks had a mixed performance, with the focus on energy companies and speculation US interest rates may not rise at all in 2016.

The US dollar fell sharply on Wednesday after weak US data and comments from a Fed policy maker interpreted as signalling further rate hikes could be delayed.

“The dollar is on its knees,” said Richard Benson, head of portfolio management with currency fund Millennium in London.

“Probably we will now have some stability ahead of US payrolls tomorrow.”

WASHINGTON – Orders to US factories fell sharply in December, closing out a year in which demand for American manufactured goods retreated for the first time in six years.

US productivity fell sharply in the final three months of 2015, closing out a fifth straight year of weak gains in worker efficiency.

More Americans sought unemployment benefits last week, but applications stayed near historically low levels in a positive sign for the job market.

ENERGY

Oil has had a volatile, fluctuating between gains and losses, following a sharp climb in the prior session, as investors assess the potential for talks on a production cut.

Both Brent and WTI fell more than 1.5 per cent.

At 0845 Friday (AEDT) Brent, the global benchmark, was down 1.54 per cent, or 54 US cents, at $US34.50 a barrel, after hitting a high of $US35.84 earlier in the day.

WTI crude was off 1.64 per cent, or 53 US cents, at $US31.75, after reaching a high of $US33.60.

PRECIOUS METALS

Gold has risen for a second day, hitting three-month highs as the US dollar continued to ease amid mounting doubts that the US Federal Reserve will raise interest rates in 2016 due to global economic and financial headwinds.

Analysts have said dovish comments from New York Fed President William Dudley on Wednesday and recent weak US economic data have cast more doubt on the likelihood of a swift pace of Fed rate increases in 2016.

“The market is fetishising bad news and convincing itself that the Fed will never be able to hike again,” director of base and precious metals trading for BMO Capital Markets in New York.

BASE METALS

Zinc has climbed to its highest in more than three months on concerns about potential shortages, while a slide in the US dollar on worries about the US economy boosted copper and the wider industrial metals market.

Metals were buoyant as investors scrambled to close out bearish positions before the Lunar New Year holiday in China.

The closure of major zinc mines in late 2015 and the filing for Chapter 11 bankruptcy by US producer Horsehead this week highlighted concern over tightening supply.

One trader, however, said the market was getting ahead of itself because shortages would not affect the market until later in 2016.

“It’s a good bounce but fundamentally unwarranted at this stage.”

ASX stocks to watch Friday, February 5

BHP – BHP BILLITON

FMG – FORTESCUE METALS GROUP

RIO – RIO TINTO: Mining company shares could benefit with the price of iron ore lifting to the $US45 mark.

GMA – GENWORTH MORTGAGE INSURANCE: Genworth Mortgage Insurance is expected to release its full year results.

NWS – NEWS CORP: New Corp is expected to post second quarter earnings on Friday.

ORG – ORIGIN ENERGY

OSH – OILSEARCH

STO – SANTOS

WPL – WOODSIDE PETROLEUM: Energy companies could again be in the spotlight with the price of oil paring back early gains overnight but still comfortably above the $US30 level.

REA – REA GROUP: REA Group is scheduled to release half year results.

WHC – WHITEHAVEN COAL: Whitehaven Coal is expected to post half year results and Genworth Mortgage Insurance its full year results.

WES – WESFARMERS

WOW – WOOLWORTHS: Australians are being warned against eating pre-packed lettuce sold at Coles and Woolworths after a salmonella outbreak.

AAP