The miners were supported by gains from two of the major banks. ANZ advanced the most of the big four, rising 0.8 per cent to $26.73, while Westpac rose 0.6 per cent to $27.69.

AMP shares fell on the news Slater and Gordon had become the fourth law firm to level a shareholder class action against the embattled financial giant. Its shares fell to their lowest ever close at $3.62, falling 3 per cent during the session.

Wesfarmers shares rose following the company's investor day where chief executive Rob Scott said that the company's focus was investing in itself rather than seeking acquisitions. He said the company was "more than happy to return surplus capital to shareholders", sending Wesfarmers shares up 1.8 per cent to $46.48.

Mayne Pharma shares rose 5.5 per cent to 87¢. US President Donald Trump overnight reaffirmed his intentions to lower pharmaceutical prices in the United States where the company distributes some of its products.

Retail Food Group shares continued their losing streak after the company said it expected underlying profits to fall 54 per cent this year. Underlying net profits for the 2018 financial year are expected to be around $34.5 million, compared with $75.7 million in 2017. Its shares fell 5.6 per cent on Thursday to 67¢.

Ingham's Group shares slumped 9.1 per cent to $3.72 following the news chief executive Mick McMahon would step down from his position after four years. McMahon oversaw the company's transition from a private business to an ASX-listed company.

Stock watch

Link Administration Holdings

Despite recent disappointments, Macquarie is remaining positive on Link Administration Holdings, maintaining its outperform rating for the administration company. The company recently announced the federal budget's changes to superannuation would likely affect the company's revenues, but Macquarie says the company can bounce back. It says that the company can still offer a variety of avenues for organic growth and is forecasting underlying top line growth of 3 per cent. The broker believes that acquisitions will underpin that growth with bolt-on acquisitions likely to be announced in the near term. It says that Link Administration can use its balance sheet capacity to fund these acquisitions, upgrading its price target from $8.10 to $8.30.

What moved the market

Trade balance

Australia's trade balance figures were relatively in-line with consensus forecasts, recording a trade surplus of $977 million in April. The trade surplus narrowed from March when the surplus was $1.7 billion but was still the four consecutive surplus in 2018. Metal ores and coal exports fell for the month on a seasonally adjusted basis while oil & gas exports continued to rise. While the result is positive Capital Economics chief economist Paul Dales said the economy may begin to slow. "It is early days yet, but it looks as though net exports are on track to make a neutral contribution to real GDP growth in the second quarter after having added 0.3 percentage points in the first quarter."

Euro

The euro has hit a two-year high against the US dollar as the European Central Bank indicated that it may be ready to discuss the a timeline for ending its massive bond-buying program. ECB Governing Council member Klaas Knot said that the Eurozone's inflation outlook was becoming less dependent on stimulus, adding that "it's reasonable to announce the end of the net asset purchases soon." CBA says that the ECB could cease asset purchases by year-end, increasing upside risk for the euro. Other analysts are remaining cautious over whether the rally will continue however, saying that the reaction from the euro may have been overblown.

Oil prices

US oil prices have continued to fall after stocks unexpectedly lifted last week. The result is reflective of weaker oil exports, strong oil imports and improving US oil production. Oil prices had been rising over the past 12 months as the US and other countries curbed their oil output. West Texas Intermediate crude prices have fallen 9 per cent in the past month, falling from a high of $US72.83. Analysts are saying that the rising oil production could create surplus risks as US gasoline and distillate stockpiles rise above expectation. West Texas Intermediate oil is trading at a strong discount to European Brent crude with the gap between the two at its largest since mid-2015.

Iron ore

Iron ore prices have risen on supply concerns coming out of China. Mines in Tangshun, one of the major iron ore and steel-producing regions in China, was forced to close due to pollution controls. Beijing has become very strict on environmental regulations in recent times and the effects are reportedly being felt across the country. The country's environmental regulation has been positive in recent months for Australian iron ore miners producing 62 per cent iron ore, as Chinese producers demand a higher grade of the metal. Analysts are saying that the premium market may be oversupplied though, limiting any potential upside for the 62 per cent iron benchmark price.