Weekend markets: Stocks fail to shake euro gloom

Stocks on Wall Street ended an eventful week with a whimper.

The Dow Jones Industrial Average slipped 2.42 points to 11,866.24, a drop of 2.6% for the week, after disappointment deepened in Europe's efforts to reign in its debt crisis.

Stocks rose for two days on tentative indications of a strengthening US economy but by Friday any signs of optimism among investors had washed out.

Stocks opened higher as a flat reading of consumer prices eased inflation concerns. But the early enthusiasm waned after Fitch Ratings placed its ratings on six euro-zone nations, including Spain and Italy, on watch for downgrade.

Fitch concluded a "comprehensive solution" to the region's debt crisis is "technically and politically beyond reach."

Other markets: Europe down, Asia up
European stocks dropped on Friday and posted a weekly loss. The Stoxx Europe 600 index fell 0.4% to 233.71, a 2.8% drop for the week.

The UK’s FTSE 100 index fell 0.3% to 5387.34, the French CAC 40 index fell 0.9% to 2972.30 and the German DAX 30 index fell 0.5% to 5,701.78.

Asian stock markets ended mostly higher as strong US economic data gave stocks a bounce after a string of losses.
Benchmarks in China and Hong Kong snapped six-session losing streaks; the Shanghai Composite climbed 2%, to 2224.84, and the Hang Seng Index gained 1.4%, to 18,285.39.

Indian shares ended at their lowest level in more than 25 months, with the Sensex dropping 2.2%, to 15,491.35, its lowest close since November 3, 2009.

Japan's Nikkei Stock Average rose 0.3%, at 8401.72, its first gain in four sessions. Australia's S&P/ASX 200 index added 0.5%, to 4159.20, Korea's Kospi gained 1.2%, to 1839.96 and Taiwan's Taiex advanced 0.3%, to 6785.09.

Commodities: Oil down, gold up
Crude-oil fell further in a week of steep declines spurred by intensifying concerns about slowing oil demand.

Light, sweet crude for January delivery on Friday settled down 34USc to $US93.53 a barrel, a 5.9% fall for the week.

Gold futures broke four-day losing streak, as fire-sale prices enticed buyers. The February delivery rose $US20.70 an ounce, or 1.3%, to $US1597.90 in New York.

Currencies: Euro gains ground
The euro strengthened only slightly against the US dollar as investors feared credit downgrades were looming for eurozone members.

Fitch Ratings lowered its outlook on France's triple-A rating to "negative" from "stable" and warned that it is considering downgrading the debt of six of the countries in the eurozone.

Standard & Poor's may soon cut the ratings of one or more eurozone members, while Moody’s downgraded Belgium by two notches, to Aa3, citing the deterioration in euro-zone bond markets.

The euro was at $US1.3034 from $US1.3015 late on Thursday. The dollar was at ¥77.78 from ¥77.85, while the UK pound was at $US1.5546 from $US1.5514.