U.S. stocks sank Friday, ending a lackluster week as investors already on edge about global growth prospects became concerned that China could take steps to brake its economy's expansion. The Dow Jones Industrial Average fell 90.52 points, or 0.80%, to 11192.5, its lowest level since Nov. 2, the day of the U.S. midterm elections.

The Dow fell 2.2% during the week on worries about the consequences of the Federal Reserve's bond buying initiative and renewed concentration on Europe's sovereign debt issues. On Friday, stocks slid as concerns were reignited that China could be moving toward further tightening of its monetary policy.

The Nasdaq Composite fell 37.31, or 1.46%, to 2518.21 Friday. The Nasdaq shed 2.4% during the week, snapping a string of five consecutive higher weeks. The Standard & Poor's 500-stock index shed 14.33, or 1.18% to 1199.21 Friday, also breaking a five week streak of gains.

Materials led the S&P 500's decline as investors worried that demand could slide if China, a big user of natural resources, cools its economy. Fertilizer producer CF Industries dropped 6.4%, while copper producer Freeport-McMoRan Copper & Gold sank 3.8% and metal processor Allegheny Technologies lost 2.7%. Aluminum maker Alcoa dropped 2.3%.

European markets

European stocks ended lower Friday after fresh worries over Chinese rate hikes sent shares tumbling in Shanghai, while bank stocks bounced back after European leaders sought to provide some reassurance to nervous sovereign debt holders. The Stoxx Europe 600 index dropped 0.4% to settle at 270.18, with mining stocks leading the decline.

The fears about further tightening in China sparked a drop in commodity prices. Among the biggest decliners, Antofagasta PLC shares dropped 2.7% and Kazakhmys PLC fell 3.4% as copper, silver and gold prices all retreated. The pan-European index, however, recovered from losing as much as 1.8% earlier in the session as European leaders tried to quell unrest among holders of Irish sovereign debt, saying that any mechanism to impose losses on bondholders would only apply to debt issued after mid-2013.

The cost of insuring Irish government debt against default fell, a reversal after repeatedly hitting fresh highs in recent days. Irish Finance Minister Brian Lenihan, meanwhile, denied rumors that Dublin was set to ask for a bailout. Bank stocks turned mostly higher. Royal Bank of Scotland Group, one of the stocks hit the hardest over the Ireland worries, gained 2.2%.

Credit Agricole shares rose 1.7% and Natixis added 1%. Among the other main indexes, the French CAC 40 index fell 0.9% to close at 3,831.2, the U.K.'s FTSE 100 settled 0.3% lower at 5,796.87 and the German DAX 30 index gained 0.2% to finish at 6,734.61.

Asian markets

Asian stock markets ended Friday lower with banks in Hong Kong and on the mainland down on concerns over more potential interest rate increases by Beijing as well as renewed concerns over Europe's sovereign debt. The Shanghai Composite Index fell 5.2% to 2985.44, Hong Kong's Hang Seng Index gave up 1.9%, Japan's Nikkei Stock Average lost 1.4%, South Korea's Kospi slipped 0.1%, and Taiwan's Taiex slid 1.4%.

Bank shares in both Hong Kong and China were lower after official data released Thursday showed China's consumer price index jumped by a more than expected 4.4% in October from a year earlier, boosting expectations for aggressive monetary tightening in coming days to battle rising inflation. A 21st Century Business Herald report Friday cited unnamed sources as saying the People's Bank of China will raise the reserve requirement ratio for several banks by an additional 50 basis points on top of its decision Wednesday to hike the ratio for all banks by the same amount.

In Hong Kong, BOC Hong Kong was 4.3% lower, China Construction Bank fell 3.8%, ICBC declined 3.1% and HSBC was 2.7% lower. On the mainland, Bank of Communications fell 6.0% and China Everbright Bank plummeted 8.5% after the report from the 21st Century Business Herald named both as among the banks required to park more cash with the central bank.

Base metals

Base metals on the London Metal Exchange closed down on the day and the week Friday, after slumping amid speculation of a rate rise in China. Commodities reversed much their gains from recent sessions on talk China, the world's top metals consumer, is preparing for an interest rate increase to counter rising inflation. China's October CPI inflation jumped higher than expected, to 4.4% year on year, figures this week showed.

LME three month copper tumbled to close at $8,614 a metric ton, down $216, or 2.4%, on Thursday's PM kerb. After hitting a new record high of $8,966/ton Thursday, the pullback brought price down $40 of where the market closed one week ago. Crude prices ended sharply lower Friday, erasing gains over the week following concerns that China may raise interest rates to curb growth in the energy hungry country.

Light, sweet crude for December delivery settled down $2.93, or 3.3%, at $84.88 a barrel on the New York Mercantile Exchange, the lowest settlement since Nov. 3. Brent crude on the ICE futures exchange gave up $2.68, or 3%, to $86.13 a barrel recently.

Data from China released Thursday showed inflation rising faster than anticipated, which could force China's central bank to raise interest rates or take other steps to curb economic growth. The Chinese government reported consumer prices rose 4.4% in October. Average inflation this year has now reached 3% and will likely accelerate unless readings slow sharply in the next two months.

Gold futures plummeted as potential moves by China to curb inflation prompted investors to cash in on the metal's recent record price. The most actively traded gold contract, for December delivery, fell $37.80, or 2.7%, to settle at $1,365.50 a troy ounce on the Comex division of the New York Mercantile Exchange. It lost 2.3% on the week.

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