After a volatile week, U.S. stocks closed nearly flat over five sessions as worries over the rate of Chinese growth and the stability of European economies mounted and ebbed. The Dow Jones Industrial Average closed up 22.3 points, or 0.2%, at 11204 Friday. The measure rose 0.1% over the week. The Dow worked its way up gradually Friday afternoon, as worries eased about the impact of more tightening in China.

Many in the market already had braced for further curbs earlier in the week. Boeing was the measure's worst performer, dropping $1.02, or 1.6%, to $63.59. Walt Disney was also was weak, shedding 57 cents, or 1.5%, to $37.04. Helping limit the drop, Hewlett-Packard climbed 80 cents, or 1.9%, to $42.49, ahead of its fiscal fourth quarter earnings report Monday.

The Nasdaq Composite added 3.72, or 0.2%, to 2518 Friday and edged down 0.004% for the week, its second straight week of losses. The Standard & Poor's 500-stock index rose 3.04, or 0.25%, to 1200, led by its materials and consumer discretionary stocks. The S&P 500 edged up 0.04% over the week.

Unsettling the market early Friday, China raised its banks' reserve requirements for the second time in as many weeks. While markets plunged Tuesday on concerns that tighter monetary policy in China could cut demand for U.S. goods and commodities, investors seemed hopeful later Friday that China's rate of growth would remain strong, even with curbs to check inflation.

The market Friday also was cushioned by comments from Irish Prime Minister Brian Cowen, who said the second day of talks on a possible aid package with European counterparts was going well.

In addition to concerns over the Chinese and European economies, investors said the market was uneasy over the long term effects of the Federal Reserve's $600 billion program of bond buying, known as the second round of quantitative easing, or QE2.

European markets

European stock markets ended mostly lower Friday, as nervous investors reduced positions before the weekend break, amid uncertainty as to when a potential bailout deal for Ireland may be agreed. The Stoxx Europe 600 index fell 0.6% to end at 269.50 points, posting a 0.3% decline for the week.

The index has gained 6.2% so far this year. Bucking the negative trend, the German DAX 30 index gained 0.2% to end at 6,843.55, posting a fresh 2010 closing high for the second consecutive session. In Ireland, the ISEQ index advanced 0.8%. Officials in Dublin were holding talks with European Union and International Monetary Fund representatives in an effort to solve the current debt crisis.

Shares of Allied Irish Banks rose nearly 5%, paring some gains following the release of a trading statement. Nearly all European stock markets, however, traded lower Friday. In Germany, Deutsche Bank AG fell 1.6% and Commerzbank AG slipped 1%. On the upside, Bayer AG rose 2.2% after the drug giant said it will cut 4,500 positions by 2012 as part of a restructuring plan.

In France, the CAC 40 index dropped 0.2% to 3,860.16 amid bank weakness. Societe Generale SA fell 2.3% and BNP Paribas SA slipped 0.7%. The FTSE 100 index declined 0.6% to 5,732.83. Miner Rio Tinto PLC fell 1.2% as China announced a hike in its reserve requirement ratio for banks.

Asian markets

Asian stock markets ended mixed Friday, with Japanese exporters rising on the yen's recent weakness against the euro, while Hong Kong Property stocks fell before the city's government announced new measures to cool the real estate market. Japan's Nikkei Stock Average ended 0.1% higher, South Korea's Kospi gained 0.7%, China's Shanghai Composite Index was up 0.8% and Hong Kong's Hang Seng Index fell 0.1%.

Property developers were leading losses in Hong Kong on talk of the government's new measures to cool the territory's booming property market, announced after the stock market closed. Cheung Kong fell 2.6%, New World Development declined 2.5%, Henderson Land ended 1.8% lower and Sino Land fell 1.5%.

In Tokyo, the recent respite from the yen's strength, especially against the euro, continued to benefit the market. Among major exporters, Toyota rose 1.6%, while euro sensitive Mazda also added 1.7%.

Base metals

Base metals closed mostly lower on the London Metal Exchange Friday after China's move to raise banks' reserve requirements fueled speculation of falling commodity demand from the world's top metal consumer. Oil prices finished slightly lower Friday, as traders focused on monetary tightening in China and euro-zone jitters.

Light, sweet crude for December delivery settled down 34 cents, or 0.4%, at $81.51 a barrel on the New York Mercantile Exchange. Trading volume was light, with Friday marking the December contract's expiration. The January contract settled down 44 cents, or 0.5%, at $81.98.

Comex gold futures ended little changed, seeing little upside from the weaker dollar as China's credit tightening moves and a likely rescue package for Ireland saw investors back away from the safe harbor asset. The most actively traded contract, for December delivery, settled down 0.1%, or 70 cents, at $1,352.30 a troy ounce on the Comex division of the New York Mercantile Exchange.

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