The US economy grew at a 2.8pct annual pace in the December quarter, up from 1.8pct in the September quarter. Economists had tipped a growth rate near 3pct. And consumer sentiment rose from 74.0 to 75.0 in January.

Fitch Ratings downgraded the sovereign credit ratings for Belgium, Cyprus, Italy, Slovenia and Spain.

European shares eased from six-month highs on Friday as traders booked profits. There was some disappointment that US economic growth was a little below market expectations. The FTSEurofirst index fell by 0.8pct, with the UK FTSE down 1.1pct while the German Dax fell by 0.4pct.

US sharemarkets ended mixed on Friday. Shares in Chevron fell by 2.5pct, dragging the Dow Jones index lower. But technology stocks rose. Facebook could file documents as early as Wednesday for an initial public offering, valuing the company near $100 billion. The Dow Jones fell by 74 points or 0.6pct but the S&P 500 eased just 0.2pct and the Nasdaq rose 11pts or 0.4pct. Over the week the Dow fell 0.5pct but the S&P 500 rose 0.1pct with the Nasdaq up 1.1pct.

US treasuries rose (yields lower) on continued European debt jitters, mixed US sharemarkets and softer-than-expected US economic growth data. US 2yr yields were flat near 0.22pct and US 10yr yields fell by 5pts to around 1.90pct.

The US dollar continued to lose ground against major currencies following the release of US GDP data. The Euro rose from lows near US$1.3080 to US$1.3235, closing US trade near US$1.3220. The Aussie dollar held between US105.95c and US106.70c, ending US trade near US$106.55c. And the Japanese yen lifted from 77.16 yen per US dollar to JPY76.61 and was near JPY76.65 in late US trade. This morning the Aussie is at US106.35c and the Euro at US$1.3215.

World crude oil prices ended mixed on Friday. US crude fell in response to softer-than-expected economic growth data. But support was provided by news that ConocoPhillips will shut its gasoline unit at the Bayway refinery in New Jersey. The Brent price rose as traders focussed on the Bayway news and an upcoming vote by Iran´s parliament to halt oil exports to the European Union. Nymex oil fell by US14c or 0.1pct to US$99.56 a barrel but London Brent crude rose by US67c to US$111.46 a barrel. Over the week Nymex oil rose by 1.1pct while Brent rose by 1.5pct.

Base metal prices were mixed on Friday, influenced by conflicting influences of profit-taking and a weaker US dollar. Nickel rose 0.5pct and tin rose 1.6pct but other metals lost 0.5-2.6pct. Over the week metals rose from 2.3-11.7pct with tin doing best. And the gold price rose after the US dollar eased in response to softer-than-expected US economic growth data. The Comex February gold price rose by US$5.50 or 0.3pct to US$1,732.20 an ounce. Over the week the gold price rose by $68.20 or 4.1pct.

Ahead: In Australia, a raft of resource companies hand down quarterly activity reports. In the US, personal income and spending figures are released. Italy holds an 8 billion euros bond auction.