US Stocks slumped Friday, in a broad-based sell off that was especially hard on the leaders of the most recent leg of the rally -- banks, energy shares and transportation companies.
The Dow Jones industrial average (INDU) lost 109 points, or 1.1%. The S&P 500 (SPX) index lost 13 points or 1.2%. The Nasdaq composite (COMP) lost 11 points or 0.5%.
Stocks had risen in the morning after upbeat results from Microsoft and Amazon.com, and an encouraging reading on existing home sales. But the tone turned negative in the afternoon.
Some analysts are saying "After seven months of mostly rallying, the buyers weren't really here this week and the bears took that as an opportunity,"
Oil prices fell amid modest profit taking as the US dollar rebounded against key currencies.
Oil market sentiment was also dampened by surprising data showing Britain still mired in a deep recession in the third quarter, confounding forecasts for a return to growth after five negative quarters.
New York's main contract, light sweet crude for delivery in December, shed 69 cents to end at $US80.50 per barrel.
LONDON - European stock markets wilted on Friday after an early rally, with investor enthusiasm waning ahead of corporate earnings reports and as software giant Microsoft reported a profit fall.
The London FTSE 100 index defied the trend however and closed with a gain of 35.21 points, or 0.68 per cent, at 5,242.57 points.
Mining companies were among the day's winners in London with Anglo American and Rio Tinto stronger.
FRANKFURT - The Dax lost 22.68 points, or 0.39 per cent, to 5,740,25 points.
PARIS - The CAC 40 fell 12.61 points, or 0.33 per cent, to 3,808.24.
The Australian share market is expected to open lower after US markets fell one per cent on Friday as investors booked profits following a busy week for company earnings reports.
At 0700 AEDT on the Sydney Futures Exchange, the December share price index contract was down 28 points at 4,824.
In economic news on Monday, the Australian Bureau of Statistics releases producer price index data for September quarter.
In company news, Bendigo and Adelaide Bank, Vision Group and Cardno hold annual general meetings.
Gold down 2.20c to US$1056.40 an ounce Silver up 17.8c to US$17.723 an ounce Copper up 3.65c at US$3.0345 a pound
