The University of Michigan preliminary reading on US consumer sentiment rose from 67.7 to 69.3 in November - marking the highest reading since June. The survey´s one-year inflation expectations measure edged up from 2.7pct to 3.0pct - the highest level in six months.

European Central Bank president Trichet called for ´´bold´´ actions to boost weak public confidence in Europe. Trichet reiterated that proposals to strengthen Europe´s existing fiscal and monetary framework do not go far enough.

European shares fell for a third straight session on Friday, as talk of potential rate hikes in China saw investors pare risky assets. Concerns about Euro-zone debt added to the weakness after Reuters reported that Ireland was in talks about tapping emergency funds from the Financial Stability Facility. Mining stocks led the declines. The FTSEurofirst index fell 0.4pct, the UK FTSE lost 0.3pct and the German Dax rose by 0.2pct.

US sharemarkets fell on Friday as Chinese inflation concerns gave investors a reason to lock in profits. Energy and resource stocks were the biggest drag on the S&P500. The CBOE volatility index jumped 10.6pct. At the close, the Dow Jones was down 90pts or 0.8pct with the S&P 500 down 1.2pct and the Nasdaq lower by 37pts or 1.5pct. For the week the Dow and S&P500 both lost 2.2pct, while the Nasdaq lost 2.4pct.

US treasuries fell (yields higher) on Friday after the Federal Reserve began its second phase of $600 billion quantitative easing program. The Fed bought $7.23 billion in Treasury paper on Friday. US 2yr yields rose by 8pts to 0.517pct and US 10yr yields rose by 16pts to 2.539pct. Over the week US 2yr yields rose by 14pts and US 10yr yields gained 25pts.

The Euro remained under pressure against the US dollar on Friday as debt issues in Ireland continued to be in focus. The Euro fell from highs near US$1.3770 to US$1.3665, ending US trade near US$1.3695. The Aussie dollar traded between US98.35c and US99.40c, ending US trade at US98.60c. And the Japanese yen is currently around 82.50 yen per US dollar after trading from JPY81.70 to JPY82.60.

US crude oil prices fell from 25-month highs on Friday. Speculation that China may raise interest rates to combat inflation curbed prices. The Nymex crude oil contract fell $2.93 to US$87.81 a barrel. For the week oil prices fell 3.4pct.

Base metal prices fell on the London Metal Exchange on Friday in response to Chinese inflation concerns. Investors steered clear of risky assets. Zinc fell 5.8pct and Nickel lost 5.5pct. Other metals traded lower by 2.2-3.5pct. And the gold price ended lower with Comex gold futures down US$37.80 an ounce to US$1,365.50.

Ahead: In Australia, New motor vehicle sales and lending finance are released. In the US retail sales and business inventories are released.

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