U.S. STOCKS

U.S. stocks traded in negative territory for most of the day Friday before paring losses late in the session to end off lows. The Dow Jones Industrial Average finished nearly flat, losing 0.08 point to 14865.06, far off the day's low of 14790.57.

The Standard & Poor's 500-stock index slipped 4.52 points, or 0.3%, to 1588.85. Materials shares, down 1.4%, led declines in five of the benchmark index's 10 industry sectors, as gold entered bear-market territory.

The Nasdaq Composite index declined 5.21 points, or 0.2%, to 3294.95. Both indexes finished with the biggest weekly gains since the first week of the year.

Friday's down day snapped a four-session winning streak that took the Dow and S&P 500 to fresh records. U.S. retail sales for March fell 0.4%, the biggest monthly decline since June, while economists had been expecting a 0.1% decline.

Excluding autos, sales dropped 0.4% versus expectations of an unchanged reading. A separate reading on consumer sentiment from Thomson Reuters/University of Michigan also disappointed, with a drop to 72.3 from 78.6 at the end of last month.

The index was expected to show an increase. In addition, the producer-price index declined 0.6% in March, more than the 0.4% decline expected.

Excluding food and energy, PPI rose 0.2%, as expected. February business inventories increased 0.1%, short of the 0.5% expected. J.P. Morgan Chase eased 0.6% after the bank reported first-quarter earnings that show signs of soft demand.

J.P. Morgan's earnings topped analysts' expectations, but mortgage banking and loan growth were weaker than expected. Since closing at a 2 1/2-week low on April 3, the bank's stock had rallied 5.3% leading up to the results. Wells Fargo also reported better-than-expected earnings, but the stock dropped 0.8% amid weakness in its mortgage business.

EUROPEAN STOCKS, BONDS

European stock markets dropped Friday, hammered by disappointing U.S. data and confusion over whether Cyprus was asking for more assistance for its bailout program.

The Stoxx Europe 600 index lost 0.9% to close at 292.39, after putting in its strongest four-day performance since early January. For the week the index rose 1.8%.

Among the biggest movers in the pan-European index, shares of German chemicals firm K+S AG fell 3.9%, as Deutsche Bank AG cut the firm to sell from hold, saying current valuation looks too expensive and potash prices will remain under pressure.

On a more upbeat note, shares of JCDecaux SA rose 2.2%. Exane BNP Paribas lifted the outdoor advertising company to outperform from underperform, citing potential benefits from urbanization and investments in infrastructure in emerging markets.

For the broader European markets, stocks extended their move lower on media reports Cyprus was asking for extra assistance beyond the 10 billion euros already pledged by its euro-zone partners and the International Monetary Fund.

The country's finance ministry reportedly quickly denied the reports, saying President Nicos Anastasiades instead was referring to technical and structural reforms to restore the economy.

The Eurogroup of euro-zone finance ministers issued a statement Friday saying reforms and restructuring efforts in Cyprus are in place to approve the bailout for country, with the first disbursement seen by mid-May.

Data for the euro zone showed industrial production rose 0.4% in February. Banks posted some of the biggest losses, with shares of Banco Popolare SC off 3.9%, Commerzbank AG off 2.8%, Deutsche Bank AG 3.6% lower and Credit Agricole SA down 2.8%.

Among major country-specific indexes, Germany's DAX 30 index slid 1.6% to 7,744.77, although still ending the week 1.1% higher. France's CAC 40 index lost 1.2% to 3,729.30, but rose 1.8% on the week. The U.K.'s FTSE 100 index gave up 0.5% to 6,384.39 and closed out the week 2.2% higher.

ASIA-PACIFIC STOCK MARKETS

Asian stock markets were mostly lower Friday, with Japan once again notching up a strong weekly performance. Despite a 0.5% decline in the Nikkei Stock Average to 13485.14 Friday, Japanese stocks still managed to record their second strongest week since the market started its dramatic rally in November.

The index was up 5.1% for the week, easily outpacing its regional peers. The Nikkei surged as the value of the yen fell in the wake of the Bank of Japan's ambitious plan to spur inflation, revealed the previous week.

Fast Retailing Co. weighed on the Japanese market at the end of the week, as the index heavyweight fell 0.9%. Shares in the retailer dropped after the company's second-quarter report showed its domestic unit Uniqlo's operation profit came in at Y29 billion, a 16% on-year decline.

Other regional markets were mixed. South Korea's Kospi was weighed down by continued concerns about North Korea. The market dropped 1.3% to 1924.23 ahead of April 15, an important date for its northern neighbor and a possible day for Pyongyang to test-fire mid-range missiles.

Caution was also evident in China where investors were anticipating the next batch of economic data coming out on Monday. Hong Kong's Hang Seng Index edged down 0.06% to 22089.05 and the Shanghai Composite Index fell 0.6% to 2206.78 in mainland China.

The headline figure will be growth numbers for the first quarter of the year, which will provide an insight into the health of Asia's largest economy. China's gross domestic product is expected to grow by 8% on-year, up slightly from a 7.9% expansion in the fourth quarter, according to 14 economists polled by Dow Jones Newswires.

COMMODITIES

Base metals closed sharply lower on the London Metal Exchange Friday, tumbling alongside wider markets after a disappointing batch of U.S. economic data eroded investor sentiment.

Flagship three-month copper closed 2.7% lower at $7,406.50 a metric ton Friday. Tin which is more volatile than the rest of the complex, due to its relatively low trading volumes was down 3.7% at $22,005/ton at the PM kerb close.

Crude-oil futures prices fell sharply Friday, hit by growing worries over rising U.S. oil supplies and slowing growth in global oil demand. Light, sweet crude oil for May delivery on the New York Mercantile Exchange settled 2.4%, or $2.22 lower, at $91.29 a barrel, the lowest price since March 6.

ICE North Sea Brent for May delivery settled 1.1%, or $1.16 a barrel lower, at $103.11 a barrel, after an intraday low of $101.09 a barrel.

Gold careened into bear-market territory, slipping below $1,500 an ounce at one point, further succumbing to investors' push for higher yields. The price of the front-month gold contract, for April delivery, declined by $63.30, or 4.1%, to $1,501 an ounce on the Comex division of the New York Mercantile Exchange, after falling as low as $1,480.20 an ounce. This is the lowest close since July 2011. Compiled from MORRISON SECURITIES PTY. LTD.