Australian shares have closed this year's second-last session slightly higher, after the Dow Jones index and S&P 500 advanced to all-time highs on a boost from retail sales.

The ASX 200 opened higher but subsequently slipped into the red after midday before staging a late rally.

Meanwhile, the benchmark index was up 0.05 per cent, to 7,513 on Thursday, with materials (+0.4pc) and financial (+0.2pc) stocks leading the way.

"The financials sector benefited heavily in 2021 from the economic expansion and robust property activity, providing banks with robust balance sheets," chief economist from CommSec Craig James noted.

"This was reflected by the buy-back initiatives and dividend payouts announced in the previous fiscal year.

"And, despite the forecast rate hikes, rational investors may continually look favourably towards the expected strong dividend payouts of banks, as opposed to an investment in the yield curve."

Magellan (+3.7pc) and Bega Cheese (+3.2pc), Nine Entertainment (+2.8pc) were among the top movers, while Imugene (-8.1pc) and IDP (-5.1pc) were among the worst performers.

All up, 100 shares were in green, 88 were in red and 12 were flat.

The Australian dollar was trading at 72.52 US cents, slightly higher.

Wall St fluctuates

Overnight, major global stock indexes were mixed on Wednesday as uncertainty over the surge in Omicron variant infections tempered optimism that harsh new curbs on business and travel may not be needed.

After a weak session in Asian stock markets, European stock markets traded mixed. The pan-European STOXX 600 slipped 0.1 per cent.

However, the Dow has risen six straight trading days, marking the longest streak of gains since a seven-session run from March 5 to March 15 of this year.

The Dow Jones index rose 0.3 per cent, to 36,4891.

Data on Wednesday showed the US trade deficit in goods mushroomed to the widest ever in November as imports of consumer goods shot to a record, as the coronavirus pandemic has limited spending by Americans on services.

Some early studies pointing to a reduced risk of hospitalisation in Omicron cases have eased some investors concerns over the travel disruptions and powered the S&P 500 to record highs this week.

The S&P 500 gained 0.1 per cent, to end at 4,793 points, while the Nasdaq Composite lost 0.1 per cent, to 15,766 points.

"The market started to recognise that the Omicron variant was in a strange way good news," said Jay Hatfield, founder and chief executive of Infrastructure Capital Management in New York.

While much of the economic optimism has centred on the United States, the main European stock index is up more than 16 per cent so far this year, showing faith in a recovery from the depths of the COVID-19 crisis.

US crude stocks, gasoline and distillate inventories fell last week, while US oil production rose to the highest since May 2020, Energy Information Administration data showed on Wednesday.

Brent crude oil was up, trading at $US79.17 a barrel, by 4:41pm AEDT.

As 2021 draws to a close, the main US stock indexes are on pace for their third straight year of stunning annual returns, boosted by historic fiscal and monetary stimulus.

The S&P 500 is looking at its strongest three-year performance since 1999.

The focus next year will shift to the US Federal Reserve's path of interest rate hikes amid a surge in prices caused by supply chain bottlenecks and a strong economic rebound.

Evergande misses new coupon payments

Shares of Evergrande tumbled on Thursday after the embattled real estate developer did not pay offshore coupons due earlier this week.

Evergrande — whose $US19 billion in international bonds are in cross-default after missing a deadline to pay coupons earlier this month — had new coupon payments worth $US255 million due on Tuesday for its June 2023 and 2025 notes.

Some bondholders holding the two bonds have not yet received the coupons, according to three sources with knowledge of the matter. Both the payments have a 30-day grace period.

Evergrande's shares were down 8.5 per cent, at $HK1.51, by 4pm AEDT.

Bloomberg News reported earlier that the due date passed with no sign of payment by the property developer.

Evergrande's Thursday decline wiped out gains from earlier this week, when the market cheered the initial progress made by the firm in resuming construction work.

Company Chairman Hui Ka Yan vowed in a meeting on Sunday to deliver 39,000 units of properties in December, compared with fewer than 10,000 in each of the previous three months.

ABC/Reuters