European Union finance ministers have approved an 85 billion euro bailout for Ireland. Portugal approved its austerity 2011 budget on Friday causing the Portuguese/German 10-year bond spread to ease.

ShopperTrak has reported that Black Friday sales in the US were 0.3pct higher than a year ago.

European shares fell on Friday as speculators turned their attention to the debt situations in Portugal and Spain. The FTSEurofirst index fell by 0.5pct, reversing a 0.5pct gain on Thursday. The UK FTSE and German Dax lost 0.5pct.

US sharemarkets eased during a shortened trading session on Friday, partially erasing gains made on Thursday. The Dow Jones fell by 95pts or 0.9pct with the S&P 500 lower by 0.8pct with the Nasdaq down 8.5pts or 0.3pct. Over the week the Dow fell by 1.0pct while the S&P 500 was down 0.9pct but the Nasdaq finished higher by 0.7pct. Over the year so far the Dow is up 6.4pct and the Nasdaq is higher by 11.7pct.

US treasuries rose on Friday (yields lower) as investors lightened positions in equities and commodities markets. US 2yr yields fell 2pts to 0.515pct, and US 10yr yields fell 4pts to 2.87pct. Over the week both US 2yr and US 10yr yields were largely unchanged.

The US dollar strengthened against major currencies in European and US trade on Friday as optimism grew about the outlook for the US economy and investors lightened positions in growth-focussed financial markets. The Euro eased from highs of US$1.3325 to US$1.3200, ending US trade near US$1.3250. The Aussie dollar fell from highs of US97.30c to US96.10c, before ending US trade at US96.40c. And the Japanese yen eased from levels near 83.65 yen per US dollar to JPY84.20, ending US trade near JPY84.10.

US crude oil prices fell in line with other commodities and equities markets on Friday as investors retreated from growth-focussed assets. A firmer US dollar also weighed on commodity prices. But supply concerns in Texas and reduced oil flows in a Canada-US pipeline supported prices. The Nymex crude oil contract fell by US10c to US$83.76. Oil rose by 2.9pct over the week.

Base metal prices fell on the London Metal Exchange on Friday. Zinc lost 4.3pct, lead fell by 2.2pct and copper and nickel dropped 1.2pct. Over the week base metal prices were mixed with nickel up 3.3pct and lead and aluminium up slightly. But zinc lost 2.2pct and copper fell 1.7pct. And the gold price also eased in line with other commodities. The Comex gold futures price fell by US$10.60 an ounce to US$1,362.40. Gold rose 0.7pct over the week.

Ahead: In Australia, the Bureau of Statistics Business Indicators publication is released. The Reserve Bank Governor delivers a speech. A raft of annual general meetings are held. In the US the Chicago Midwest index and Texas manufacturing outlook survey are scheduled.

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