US consumer prices rose were flat in November after a 0.1pct drop in October. Consumer prices were up 3.4pct in the 12-months to November. Excluding food and energy consumer prices was up just 0.2pct in November.

European shares were weaker on Friday as investors grew nervous about the possibility of further ratings downgrades in Europe. Fitch placed Belgium, France, Cyprus, Ireland, Italy, Slovenia and Spain on credit watch and warned that a comprehensive solution to the debt crisis is ´´technically and politically beyond reach´´. The FTSEurofirst index lost 0.5pct with the UK FTSE down by 0.3pct while the German Dax was lower by 0.5pct. The FTSEurofirst index lost 2.9pct for the week.

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US shares gave back early gains on Friday as the ongoing European debt crisis outshone the upbeat US economic data. Trading was choppy due to quadruple witching - the expiration of four types of futures contracts. At the close of trade, the Dow Jones was lower by 2pts with the S&P 500 up 0.3pct and the Nasdaq was higher by 14pts or 0.6pct. Over the week the Dow fell 2.7pct, the S&P 500 lost 2.9pct and the Nasdaq lost 3.5pct.

US treasuries rallied on Friday (yields lower) as safe-haven buying intensified after notice that Fitch would review sovereign credit ratings across the Euro-zone. The tame US inflation environment also supported the bid for treasuries. US 2yr yields fell 2pts to 0.258pct and US 10yr yields fell by 6pts to 1.85pct. Over the week US 2yr yields were relatively flat and US 10yr yields fell by 22pts.

Major currencies gave back gains against the greenback on Friday. The Euro hit early highs near US$1.3085 before falling to around US$1.3000 and headed into the US close near US$1.3040. The Aussie dollar fell from early highs around US100.25c to US99.40c, and was near US99.70c in late US trade. And the Japanese yen traded between JPY77.95 yen per US dollar and JPY77.60, ending US trade near JPY77.80.

US crude oil prices fell in a volatile trading session on Friday. Volumes were light and the sell-off in risky assets over the later part of trade saw oil prices erode early gains. Nymex crude oil fell by US34c or 0.4pct to US$93.53 a barrel and London Brent crude fell by US25c to US$103.35 a barrel. Over the week Nymex crude fell by 5.9pct.

Base metal prices were mostly higher on the London Metal Exchange on Friday as traders focused on the upbeat US economic data. Metals rose between 1.1pct-3.6pct with the exception of lead (down 0.9pct). And the gold price recorded modest gains breaking a four day losing streak. The Comex gold price rose by US$20.70 an ounce or 1.3pct to US$1,597.90. For the week the gold price lost 6.9pct.

Ahead: In Australia, population growth statistics are released. In the US, the NAHB Housing market index is released.