ASX futures were 15 points or 0.2% lower to 7351 at 7:00am AEST on Friday, indicating a weaker start.

The US indexes are mixed Thursday after data indicated that household spending surged in October while the pace of underlying inflation slipped. The S&P 500 fell 0.1% in the final hour of trade, and the Dow Jones Industrial Average declined 0.6%, while the tech-focused Nasdaq 100 index was roughly flat, less than 0.01% higher.

In crypto news, Sam Bankman-Fried said he never meant to commit any fraud, or tap client funds to support leveraged bets that went south, at Alameda Research, a crypto hedge fund affiliated with FTX.

Thursday's moves come after rallies across the major averages in the prior session, after a speech from Powell in Washington in which the US central banker signaled officials there could take the final interest rate hike of the year at the end of the month from 75 basis points to 50 basis points' tightening in policy.

Brent crude was little changed at $US 87.01 a barrel, while gold fell almost 2% to US$1,802.21.

In local bond markets, the Australian 2 Year bonds slumped to a yield of 3.04% and the 10 Years fell to 3.48%. Overseas, yield on 2 Year US Treasury notes eased to 4.25% while 10 Year US Treasury notes moved down to 3.53%.

The Australian dollar fell to 68 US cents. The Wall Street Journal Dollar Index, which measures the U.S. currency against 16 others, slipped to 97.46.

Asia

Asian shares rallied sharply on Thursday, after the U.S. Federal Reserve signaled it was prepared to slow the pace of interest rate hikes and the giant Chinese cities of Guangzhou and Chongqing eased COVID curbs in the face of nationwide protests urging an end to lockdowns.

China’s Shanghai Composite index climbed 0.45% after the Vice Premier Sun Chunlan said the Omicron variant was weakening and that vaccination rates were rising. The easing of some anti-COVID restrictions in China also stoked hopes that China would soon end a lockdown of its economy. Hong Kong’s Hang Seng index traded to a two-month high before closing 0.75 percent higher.

Japanese shares gained, with data showing the country’s companies finally opened the spigots on capital spending in the third quarter at the fastest pace in more than four years. The Nikkei average gained 0.92% to 28,226.08, ending a four-day losing run.

Europe

The pan European Stoxx 600 rose 0.76%. Germany’s DAX added 0.69% and France’s CAC 40 rose 0.23% as the U.K.’s FTSE 100 slipped 0.19%.

European stocks ended higher as investors welcomed comments from US Federal Reserve Chairman Jerome Powell saying interest rate hikes would be smaller beginning as soon as December.

On the UK market, Ocado Group rose 6.8% after announcing a new supplier insights product designed to boost sales and grow revenue. Positive impacts that led ICP to increase by 6.25% and Schrodders by 4.75%. Prudential, Scottish Mortgage, RS Group, Haleon, Kingfisher, Ashtead Group, Halma, United Utilities, Dechra Pharmaceuticals, Segro and Barratt Developments rose 2% to 4%.

North America

U.S. indexes are mixed in Thursday morning trading and Treasury yields are holding steady following a report showing that household spending spiked in October even as a measure of underlying inflation slowed. The S&P 500 was 0.1% lower, the Dow Jones Industrial Average was slightly lower, by 0.6%, and the tech-heavy Nasdaq 100 index was flat, or 0.01% higher.

In crypto news, Sam Bankman-Fried said he didn’t set out to perpetrate fraud or have customer funds backstop leveraged bets that soured at Alameda Research, a crypto hedge fund linked to FTX.

Thursday's moves come after surges across the major averages in the previous session following a speech from Powell in Washington, in which he indicated US central bank officials may cut back the final hike of the year later this month to 50 basis points.

“We believe we have our policy rate in the range of the neutral rate,” Powell said, speaking at the Brookings Institution, shortly before he became FED Chair, of the “uncertain lags” also, of monetary tightness. “The time to slow the pace of further rate increases may be as soon as the December meeting.”