ASX futures were 11 points or 0.16 per cent higher pointing to gains at the open, at 6896 as of 8.00am 0900 Friday.

The S&P 500 fell 3.23 points, or less than 0.1 percent, to 4,151.94. The tech-heavy Nasdaq Composite climbed 52.42 points, or 0.4 percent, to 12,720.58. The Dow Jones Industrial Average fell 85.68 points, or 0.3 percent, to 32,726.82.

The Bank of England increased its benchmark interest rate by half a percentage point on Thursday, the biggest one-step increase in over a quarter century. The central bank’s action puts Sherr stepping in heat rows of the Federal Reserve in tilting the battle against inflation above the danger of slamming the brake pedals on growth.

The Labor Department said on Thursday that the number of people who applied for unemployment benefits increased by 6,000 at the end of July, to 260,000. New filings dropped as low as 166,000 in late March, but have edged up with the economy slowing down.

Economically, Friday will also bring July's US jobs data for traders to scour. Economists polled by The Wall Street Journal anticipate that the Labor Department will say 258,000 jobs were added.

In commodities markets, Brent crude oil slid 2.8% to $US94. 05 a barrel, gold had gained 1.9% to US$1,810 an ounce.

Australian share market

The Australian share market has lost ground after the US threatened to impose tariffs on EU goods, and as trade tensions between the US and China resume. Internationally, the yield on 2 Year US Treasuries fell to 3.03%, and the yield on 10 Year US Treasury notes fell to 2.67%.

The Australian dollar was near flat at 69.71 US cents from 69.49 at the close of trade. The WSJ Dollar Index, which measures the U.S. currency against 16 others, ticked lower to 97.63.

Asia

Chinese stocks rose in Asia trading, after two days of declines as concerns about U.S.-China relations flared in the wake of U.S. House Speaker Nancy Pelosi’s visit to Taiwan. The benchmark Shanghai Composite Index rose 0.8 percent to 3189.04, the Shenzhen Composite climbed 0.9 percent to 2135.33 and the ChiNext Price Index finished 0.5 percent higher at 2640.78. Automaker BYD Co. rose 1.5% after cutting a fresh all-time record in July vehicle sales. Developments around China-Taiwan relations will be closely watched, after Beijing suspended certain fish and fruit imports from Taiwan as well as exports of natural sand to Taiwan, UOB analysts write in a note. “China’s foreign ministry warned that it would have more penalties for the US and Taiwan,” they write.

Hong Kong’s Hang Seng Index added 2.1% to 20,174.04, which picked up from the index’s rebound in the previous session on the back of strength for tech and electronics sectors. Even if the local market has recovered following a selloff earlier this week on news of the U.S. House Speaker Nancy Pelosi’s visit to Taiwan, near-term caution on Chinese shares is likely warranted amid elevated U.S.-China tensions, write Goldman Sachs analysts in a note. BYD Co. gained 2.5% after strong sales data for July. Wharf REIC surged 6.7% even though it reported a 1H loss and raised its interim dividend 4.5% on year to HK$0.70. Shares of Alibaba Group rose 5.1% in anticipation of the company’s quarterly results, which are scheduled for after the market closes. Shares of SJM Holdings fell 12% in its wake for a rights issue.

Europe

European markets were higher after an interest-rate increase by the Bank of England. The pan-European Stoxx Europe 600 rose 0.5 percent, the French CAC 40 rose 0.65 percent, and the German DAX rose 0.5 percent.

The U.K. will head into recession in 4Q this year and won’t see growth until 2023, the BoE said, Validus Risk Management notes. “If the likely new Tory leader — the foreign minister, Liz Truss — has won the worst game of musical chairs in the land, the Vichy French position I would rather not occupy is the one amply filled with grey poolside catatonia,” writes Validus’s Shane O’Neill.

London’s FTSE 100 gained 0.03% Thursday after the Bank of England announced its biggest interest rate increase in 27 years, increasing it by 0.50% to 1.75%. "The FTSE 100 despite the gloomy outlook being painted by the Bank of England… [has] held up relatively well, although weakness in the oil price which is below $100 a barrel is keeping a lid on its attempt to head higher," said Michael Hewson at CMC Markets. The day’s major riser was Entain, which closed up 5%, while Flutter Entertainment and Anglo American were up 4% and 3.2% respectively. Rolls-Royce was the FTSE 100’s biggest faller, having reported a swing to 1H pretax loss, 8.1% lower, with Hikma Pharmaceuticals and Mondi 6.3% and 5% weaker.

North America

U.S. stocks finished mixed on Thursday as investors weighed a new round of corporate earnings reports and the number of Americans seeking unemployment benefits rose.

The S&P 500 fell 3.23 points, or less than 0.1 percent, to 4,151.94. The Nasdaq Composite, which is heavy with technology stocks, was up 52.42 points, or 0.4 percent, at 12,720.58. The Dow Jones Industrial Average lost 85.68 points, or 0.3 percent, to 32,726.82.

Coinbase Global shares rose $8.09, or 10%, to $88.90 after the cryptocurrency exchange said it will work with money manager BlackRock. Lucid Group dropped $2, or 9.7 percent, to $18.56 after the electric-vehicle company reduced its outlook for car production. Clorox dropped $6.81, or 4.7 percent, to $137.76 after the cleaning-product maker reported no growth in revenue for its most recent quarter.

Weighed down by company news: Eli Lilly fell $8.04, or 2.6 percent, to $305.79 after the drugmaker said its revenue fell in the second quarter. Shares of Alibaba, the Chinese e-commerce company, rose $1.71, or 1.8 percent, to $97.43 in New York after the company released the results.

Stocks have ripped higher in recent weeks, lifting the S&P 500 13 percent from its mid-June low. A string of generally positive corporate earnings reports as well as indications that some of the drivers of the inflation surge are moderating have led to the partial rebound in stocks after a bruising first half of the year.

“We’re getting a little bit of a refreshing guidance here from a lot of the management at these companies, and it wasn’t as doom-and-gloom as some had feared,” said Shawn Cruz, head trading strategist at TD Ameritrade. “I believe that worst-case tears the table has been pulled and that is bringing some buyers back to the market.”

But some investors say volatility will probably come back, particularly if the slowing economy starts weighing on the outlook for corporate profits later this year. And some money managers also say that markets have been a bit too enthusiastic about the idea that the Fed will halt its interest rate increases and then cut them next year.

“We may be experiencing a bear-market rally,” said Desmond Lawrence, a senior investment strategist at State Street Global Advisors.

Traders, meanwhile, will get an opportunity to parse July’s jobs data on Friday on the economic front. Economists polled by The Wall Street Journal forecast that the Labor Department will say the U.S. added 258,000 jobs.

Investors, it seems, are betting that the slowing rate of economic growth will lead the Fed to retreat from its plans to raise interest rates a move that would increase the value of both stocks and bonds, Mr. Lawrence said. “That might be getting a little ahead of things,” he said, noting that expectations for corporate earnings “are pretty high for what looks like it potentially either turning down or slowing down.”

Saira Malik, the chief investment officer of Nuveen, said the market’s expectations of rate cuts by the Fed in early 2023 were “optimistic.”

“We think the Fed will have to keep hiking offers for a good while yet, well into the foreseeable future,” until inflation falls to a much lower level, Ms. Malik said. “And it might take a recession to get there.”