Australian shares gave up all of Thursdays gains when the markets opened on Friday morning with the All Ordinaries Index diving 1.4 per cent to 5082.9 points.

On Thursday, the share market rallied on on gains among big banks and miners with the S&P/ASX200 index up 72.5 points, or 1.45 per cent to 5082.2 and the broader All Ordinaries index adding 70.3 points, or 1.38 per cent, to 5151.8.

Wall Street finished slightly lower in the overnight trading session, but both the Dow Jones Industrial Average and the S&P 500 Index have eked out gains for the first quarter.

• US Federal Reserve chief says rate rise ‘unlikely’
• The great apartment shakeout has begun
• Bunnings bringing smaller stores to shopping centres near you

It was a volatile three months for US markets, with the rally in March helping to save the S&P 500 from its worst start to a year since 2009.

In economic news, data published overnight revealed that first-time claims for jobless benefits rose unexpectedly last week.

The applications increased by 11,000 to a seasonally-adjusted 276,000.

On average, economists were expecting claims to remain unchanged at 265,000.

However, jobless claims consistently remain well below the 300,000 mark, indicating a robust labour market.

The Dow Jones Industrial Average closed down 31 points, or 0.2 per cent, to 17,685.

The S&P 500 lost 4 points, or 0.2 per cent, to 2,059 and the Nasdaq was steady at 4,869.

Stocks in Europe were sold off and in London, the FTSE 100 Index closed 0.5 per cent lower at 6,174.

At the same time, the Australian dollar was slightly lower at 76.58 US cents.

On the cross-rates it was buying 67.29 euro cents, 53.31 British pence, 86.22 Japanese yen and $NZ1.10.

West Texas crude oil had edged up to $US36.71 a barrel, a barrel of Tapis was fetching $US40.03 and spot gold had risen to $US1,231.60 an ounce.