US markets were mixed on Friday night, but still managed to cap off February with a very strong monthly gain.

Wall Street looked set for another rally after a measure of Chicago-area manufacturing activity climbed more-than-expected in February.

At one stage the Dow was up more than 120 points, but a late session slump saw the index fade from its earlier highs.

The Dow rose 49 points (+0.3%) to 16322, the S&P500 put on five points (+0.3%) to 1859 whilst the Nasdaq shed 11 points (-0.3%) to 4308.

The late volatility came in response to reports of Russian troops entering the besieged Ukraine, stoking tensions between America and Russia.

February was nonetheless a standout month for the Dow, with its rise of 4% making it the best month for the blue chip index since January 2013.

In the currency space, the greenback was supported by the Chicago PMI read and data showing a slight lift in US consumer sentiment last month.

The Ukrainian crisis has fuelled volatility in currency markets this morning, with the Aussie and Kiwi dollars both gapping lower at the start of today's trading.

Of the major commodities, gold was pressured by the positive US manufacturing data whilst oil rose on bets rising consumer confidence will spur energy demand.

In economic news, the ANZ job ads survey and company operating profits data are both due for release at 11:30am, AEDT. HIA new home sales data is also due out at some stage today.

A key focus for regional investors will be the China HSBC Final Manufacturing PMI, due out at 12:45pm, AEDT.

Morning Market Update: BIG Week Ahead is a post from: Australian Stock Report Market Pulse Blog