The world economy is still in a precarious position despite signs of recovery, World Bank President Robert Zoellick said.

Oil prices sank under $US67 a barrel after weak US jobs data quashed hopes of a speedy economic recovery, and gold fell $US10.30 to settle at $US931 an ounce.

Stocks to watch on the Australian stock exchange on Friday:

The Australian dollar opened lower as investor expectations of a recovery in the US economy were dampened after the US jobless rate hit a 26-year high.

Ailing iron ore miner Territory Resources Ltd has reached a standstill agreement with its financiers to allow it to restructure its $72 million debt.

The Australian sharemarket is expected to open significantly lower after heavy falls on Wall Street and European markets.

A dour report on job losses in the United States in June sent Wall Street stocks sharply lower.

Rio Tinto has requested a trading halt on its shares as it seeks subscribers for a shortfall in its Australian rights issue.

Santos Ltd has taken a large stake in New South Wales-based coal seam gas (CSG) explorer and producer Eastern Star Gas Ltd but has ruled out a takeover.

Bank of Queensland has raised $750 million in a government-guaranteed domestic bond issue that was three times oversubscribed.

The Australian dollar closed weaker on Thursday after the nation recorded its largest trade deficit in 10 months.

BHP Billiton has been ordered to commission an independent engineering study at one of its WA nickel mines following two rockfalls in the past three weeks.

The Australian share market closed flat after earlier gains were whittled back despite gains in the resources sector and a positive lead from Wall Street.

Despite the bullish overnight leads, the Australian market drifted lower throughout the day, eventually closing in positive territory, but only just.

Stocks to watch on the Australian stock exchange at the close:

Marine phosphate mining hopeful Minemakers Ltd has taken a substantial stake in joint venture partner Union Resources Ltd.

The Australian dollar was higher at noon, with overnight gains offsetting a worsening in the nation's trade balance in May.

The Australian share market was higher at noon led by the big miners and a positive lead from the US market.

Stocks to watch on the Australian stock exchange at noon.

Wealth management firm Plan B Group Holdings Ltd has acquired mortgage broker Aspire Finance (WA) Pty Ltd through a combination of debt and equity.

BHP Billiton Nickel West and Mithril Resources Ltd have withdrawn from the Silver Swan North nickel and gold joint venture.

Australia's international trade position sank deeper into deficit in May as exports plunged by five per cent in a difficult global environment.

Rio Tinto's largest shareholder, Aluminum Corporation of China has taken full part in a $US15.2 billion rights issue from the Anglo-Australian miner.

Westpac Banking Corp has scrapped its retail-shareholder benefits package, due to increasing administration costs and very low take-up of the benefits on offer.

Rio Tinto plc, the UK-listed arm of the miner, says it received acceptances for almost 97 per cent of the 524 million new shares it offered in a rights issue.

The Australian dollar opened firmer on Thursday, as a lift on equity markets gave a boost to high yielding currencies.

A trustee unravelling Bernard Madoff's fraud has allotted $US231 million from a compensation fund - a record for the fund but a fraction of what was lost.

Stocks to watch on the Australian Stock Exchange today.

Oil prices fell after bouncing above $US71 as markets reacted to a mixed report on US petroleum inventories.

The Australian sharemarket is expected to open higher after Wall Street rose on positive economic data and commodity prices strengthened.