U.S. blue chip stocks posted their biggest gains of the week Friday, closing out a quiet week buoyed modestly by brighter economic data.

The Dow Jones Industrial Average rose 40.26 points, or 0.35%, to 11410.3, its biggest gain of the week.

General Electric (GE) led with a gain of 59 cents, or 3.4%, to 17.72, after the conglomerate raised its quarterly dividend 17%, its second increase this year.

The Nasdaq Composite added 20.87, or 0.80%, to 2637.54.

The Standard & Poor's 500 stock index rose 7.40, or 0.60%, to 1240.40.

The S&P 500 gained 1.3% for the week, while the Dow added just 0.3% for the period.

It has been an unusually flat stretch for the stock market.

Even Friday's modest gain ended the Dow's streak of five consecutive sessions in which the measure moved less than 20 points, the longest such stretch since October 2006.

Friday's advance came as data showed U.S. consumers felt more upbeat on the economic outlook in early December while U.S. exports in October surged to their highest levels in more than two years.

The total U.S. deficit in international trade of goods and services unexpectedly fell more than 13% as the U.S. trade deficit with China narrowed.

Exports to China surged nearly 30%, while imports fell slightly.

Meanwhile, China's trade data also topped expectations, with exports and imports both soaring to records in November.

However, China's central bank said it will raise banks' reserve requirement ratio by 0.50 percentage point, the sixth such increase this year and third in a month.

European Markets

Europe's core stock markets closed mostly higher Friday, boosted by strength in the auto sector but limited by weakness in banks such as Standard Chartered PLC.

The Stoxx Europe 600 index closed up 0.1% at 276.20 its highest closing price since late September 2008.

It was the fourth day in a row that the index achieved a multiyear closing high.

The People's Bank of China raised the reserve-requirement ratio for banks by 0.5 percentage point Friday, the sixth such increase this year.

In Europe, autos were in the spotlight after German auto group Volkswagen AG reported a 12.7% rise in vehicle deliveries to 6.59 million in the first 11 months of the year.

In Germany, shares of Volkswagen closed up 3.9%, while those for BMW AG also added 3.9% and Daimler AG gained 3%.

Friday's gains for auto stocks helped lift the German DAX 30 index back above 7,000, with the index closing up 0.5% at 7,006.17.

Auto related stocks were also up in France, with shares of Michelin SA up 1.6% after the company said Friday that it will raise prices of its truck tires in Europe by around 5%.

Shares of Peugeot SA and Renault SA gained 1% and 0.8%, respectively.

The French CAC 40 index closed down 0.02% to 3,857.35, as financial stocks dropped. Societe Generale SA fell 0.7%, and AXA SA slipped 1.1%.

In London, the FTSE 100 index ended the session up 0.1% at 5,812.95, as shares of Standard Chartered fell 2.6%, a day after the bank warned of rising costs.

Asian Markets

Asian stocks ended mostly lower Friday as robust China trade data heightened concerns of an imminent interest rate hike from Beijing, but strong industrial output data pulled Indian shares out of a three day losing streak.

Japan's Nikkei Stock Average fell 0.7%, while South Korea's Kospi slipped 0.1%.

In Hong Kong, the benchmark Hang Seng Index ended little changed, while China's Shanghai Composite advanced 1.1%. The Sensex added 1.4%.

Mainland listed shares ended higher despite the tightening concerns, boosted by demand for mining and telecommunications companies after China reported record exports and imports in November.

During the session, the General Administration of Customs said November exports grew 34.9% on year to $153.3 billion, far stronger than October's 22.9% rise and above the median forecast of a 22.4% rise in a survey of economists.

Imports rose 37.7% to $130.4 billion, up from October's 25.3% and above the median forecast of a 24.5% increase.

In Shanghai, Ping An Insurance climbed 2.9% and China Life Insurance rose 1.9%, while China Construction Bank added 1.1%.

In Hong Kong, concerns over a possible rate hike hurt blue chip property developers China Overseas Land, which fell 1.2%, and China Resources Land, which shed down 0.7%.

In Shanghai, Poly Real Estate Group fell 0.7% and China Vanke lost 0.9%.

After the market close, China's central bank said it will raise banks' reserve requirement ratio by 0.50 percentage point, the sixth such hike this year, as inflationary pressures strengthen.


Base Metals

Base metals closed mostly lower on the London Metal Exchange Friday after copper slipped back from near record highs as the U.S. dollar firmed against the euro.

The red metal was one of only two metals, the other nickel, to end the day in the black.

The LME's three month copper contract closed at $8,989 a metric ton, up 0.4% on the day and up 2.7% from the start of the week.

It had earlier peaked at an intraday high of $9,071.50/ton.

Nickel outperformed its peers, closing the day at $23,980/ton, up 1.6% on the day and the start of the week.

Crude futures declined Friday following China's decision to tighten bank reserve requirements, as worries persisted that an interest rate increase could follow.

Light, sweet crude for January delivery settled 58 cents, or 0.7%, lower at $87.79 a barrel on the New York Mercantile Exchange.

Brent crude on the ICE futures exchange settled 51 cents, or 0.6%, lower at $90.48 a barrel.

Comex gold futures eased as traders eyed a possible weekend interest rate hike in China and upbeat U.S. trade data.

The most actively traded contract, for February delivery, settled down $7.90, or 0.6%, at $1,384.90 per troy ounce on the Comex division of the New York Mercantile Exchange.

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