Free audio stream, including stories that are padlocked on our site. Listen on any device, anywhere. Updated twice daily. The audio stream takes several seconds to start on Android devices.Launch Radio player
Wall Street was mixed as concerns about the US debt ceiling, and the potential impact on the economy, moved to the fore.
Treasury Secretary Timothy Geithner warned that failure to lift the $US16.4 trillion debt limit by early March would "impose severe economic hardship".
Fitch Ratings yesterday said it expects Congress will raise the debt ceiling and that the risk of a US sovereign default "remains extremely low".
However, failure to do so "in a timely manner will prompt a formal review of the US sovereign ratings", the ratings agency said in a statement.
Federal Reserve Bank of New York's general economic index fell to minus 7.8 in January from a revised minus 7.3 in December, signalling the sixth straight month of contraction for the region's manufacturing.
"The manufacturing sector in general has been stuck in neutral for several months now," Thomas Simons, an economist with Jefferies Group in New York, who had forecast an improvement in the Empire index to minus 2, told Bloomberg News. "It still hasn't shown any progress. We're still stuck in the mud here."
At least there was some relief from retail sales, which climbed a better-than-expected 0.5 percent last month after gaining 0.4 percent in November, according to Commerce Department data.
"Consumers continue to provide underlying support for the economy," Eric Green, chief economist at TD Securities in New York, told Reuters.
The report also helped underpin retail stocks, including JC Penney, last up 1.9 percent.
In afternoon trading in New York, the Dow Jones Industrial Average edged 0.02 percent lower, while the Standard & Poor's 500 Index slipped 0.01 percent and the Nasdaq Composite Index fell 0.24 percent.
In Europe, the Stoxx 600 Index finished the session with a decline of less than 0.1 percent from the previous close. The FTSE 100 managed a 0.2 percent gain, though France's CAC 40 slid 0.3 percent and Germany's DAX sank 0.7 percent.
The German economy probably contracted about 0.5 percent in the last three months of 2012, compared to the previous quarter, according to Federal Statistical Office data. For the whole of 2012, Europe's largest economy still grew, albeit at the slowest pace in three years.
Spain drew solid demand for its bond auction today, selling 5.75 billion euros of bills.
Italy is selling 6 billion euros of 15-year bonds via banks today, to be priced to yield 30 basis points more than the rate on the current benchmark, Bloomberg News reported, citing information from a person familiar with the offering, who asked not to be identified because terms have not been established.
The security will be set against the 4.5 percent bond due March 2026.