Weekend markets: Stocks rise above debt worries

Blue chip stocks on Wall Street rebounded at the end of the week after dropping nearly 400 points over the previous two sessions.

Investor concerns centred on a potential proposal of future European bailouts on continued worries over Washington's debt talks.

In Europe, reports said the International Monetary Fund might call on the European Central Bank to lend it money to finance bailouts. If all parties agreed, a deal could be announced at the December 9 European Union summit.

Meanwhile, lack of progress over the US Congress' so-called super committee on deficit reduction is raising concern. The budget cuts are due to be decided by next Wednesday.

The Dow Jones Industrial Average ws up 25.43 48 points, or 0.2%, to 11,796.16 at the close (10am NZ time).

The broader S&P 500 index was down half a point to 1215.65, with material and utility stocks being the best performers.

The technology-oriented Nasdaq Composite dipped 0.6%, to 2572.50.

Other markets: Europe, Asia down on debt worries
European equities ended lower, pressured by ongoing worries over the ability of euro-zone leaders to get a grip on a debt crisis.

Bank stocks did worst, with Lloyds Banking Group losing 2% and HSBC Holdings declining 0.7% in London.

Deutsche Bank shed 1.2% in Frankfurt while in Paris, Credit Agricole fell 1.2% and Societe Generale sank 1.7%.

The Stoxx 600 index fell 0.8% to close at 232.17, after falling 1.3% on Thursday. It was a 3.7% weekly loss.

Germany's DAX lost 0.9% to 5800.24, the French CAC-40 index dropped 0.4% to 2997.01 and the UK’s FTSE 100 index sank 1.1% to 5362.94.

Spain's IBEX 35 Index closed up 0.5% at 8310.10 ahead of Sunday’s general election in which Mariano Rajoy's centre-right opposition Popular Party is widely favoured to defeat the incumbent socialist government.

Asian shares dropped sharply. Hong Kong's Hang Seng Index closed 1.7% lower at 18,491.23, while China's Shanghai Composite Index fell 1.9% to 2416.56.

Japan's Nikkei Stock Average lost 1.2% to 8374.91, Korea's Kospi fell 2% to 1839.17 and Australia's S&P/ASX 200 index shed 1.9% to 4177.

Commodities: Oil falls back, gold rises
Oil prices tipped under $US98 a barrel after topping $US100 mid-week following the sale of a key US pipeline.

The spike was seen as an overreaction and prompted traders to lock in profits on Thursday and again on Friday.

Light, sweet crude for December delivery on Friday finished $US1.41, or 1.4%, lower at $US97.41 a barrel in New York, after falling as low as $96.64 in earlier trading.

December crude expired on Friday, and January crude, which settled $US1.26 lower at $US97.67, will begin trading as the benchmark contract on Monday.

Gold futures made small gains at the end of a tumultuous week dominated by worries about Europe's spreading debt problems.

Gold for November delivery rose $US4.90, or 0.3%, to settle at $US1724.70 an ounce in New York. The contract lost 3.5% for the week.

Currencies: Euro recovers
The euro neared $US1.36 on hopes that the IMF would play a greater role in any bailouts of eurozone governments.

Italian and Spanish bond yields eased following purchases by the European Central Bank, which took off some pressure on the euro.

The dollar also plumbed its lowest level against the yen since the Japanese authorities piled in to buy the US currency on October 31.

The euro traded at $US1.3595 against the dollar, compared with $US1.3457 late on Thursday in New York. The dollar was at ¥76.64, down from ¥76.98.

The UK pound was at $US1.5880, compared with $US1.5775.