GLOBAL MARKETS

European stocks reversed course after China raised interest rates and corporate earnings disappointed on Friday, while the cost of insuring risky European debt rose on fears for the health of the U.S. credit market.

Japan's Nikkei average was nearly flat on Friday with Nippon Steel Corp. and other steel shares advancing following strong output data, but gains were limited as KDDI Corp tumbled on price war fears.

Motorcycle maker Harley-Davidson Inc. said on Thursday quarterly earnings rose 19 percent boosted by foreign markets although shares fell due to a greater-than-expected decline in U.S. sales.

Logitech, the world's largest maker of computer mice, posted a 15 percent drop in first-quarter profit on Thursday as competition pressured Webcam sales, pushing shares lower.

PNC Financial Services Group Inc., a fast-growing Northeast U.S. regional bank, on Thursday posted a disappointing second-quarter profit, sending shares down to their lowest level in four months.

International Game Technology said on Thursday its fiscal third-quarter net earnings rose a greater-than-expected 20 percent, on higher sales of its slot machines and improved results from its own gaming operations.

Stocks rose sharply on Thursday as multinational companies such as IBM and Juniper Networks Inc. reported earnings that beat forecasts, shifting investors' focus back to corporate profits and away from subprime credit worries.

Baxter International Inc. on Thursday reported higher second-quarter net profits, driven by improved demand for its blood therapy products that contributed to a 7 percent increase in overall sales.

The dollar eased slightly against most currencies on Thursday over concerns about the health of U.S housing market as investors eye the next Federal Reserve rate move.

NEW YORK,U.S. Treasuries eased on Thursday as investors booked some profits on a week of gains, but the market remained solidly underpinned by fears that more bad news on housing was just around the corner.

Equities overcame concerns about credit market risks on Thursday, rising solidly while the dollar stuck close to record lows against the euro.

Japan's Nikkei average inched up 0.23 percent on Thursday as earnings hopes lifted Chugai Pharmaceutical Co. Ltd. and shipping firms such as Kawasaki Kisen Kaisha Ltd.

Several brokerages raised their share price targets for Intel Corp. on Wednesday, betting the leading chip maker would improve after reporting disappointing profit margins for the last quarter.

The dollar rose to session highs against the euro and yen on Wednesday after news that June housing starts were slightly higher than expected, a small sign the sector may be improving prospects for the economy.

U.S. investors remain confident in the health of the economy and most expect the U.S. stock market to hold near its recent record levels or extend them modestly, according to a Reuters/Zogby poll released on Wednesday.

Treasury bond yields edged lower in Europe on Wednesday after Bear Stearns told investors two of its hedge funds had very little value, and stocks were hit by weaker-than expected company earnings.

The Dow closed at a record on Tuesday, though retreating from the 14,000 mark it earlier crossed for the first time, while the Nasdaq rose to a six-and-a-half-year high on a cascade of stronger-than-expected earnings.

The dollar rose versus the yen for the first time in three sessions after a government report showed foreign investors bought a record amount of U.S. securities in May.

World stocks fell on Tuesday from this week's record high while the credit market and dollar weakened, hit by fresh concerns that troubles in the risky end of the U.S. mortgage sector could spread to the wider economy.

The broader U.S. stock market fell on Monday on worries that troubles in the subprime mortgage market may spread, but optimism about earnings at multinational companies pushed the Dow to nearly 14,000. Energy stocks fell, led by ConocoPhillips, because of concern about dwindling profit margins for gasoline.

Industrial metal lead extended its recent hot streak on Monday, hitting another high, while steel additive nickel was hit by reports of lower use, fund managers and analysts said.

Asian shares mostly eased on Monday with South Korea retreating from record highs on fears the government may move to cool the market, while Brent crude was about $1 away from its highest level due to supply worries.

The dollar weakened against major currencies on Monday, plumbing fresh multi-year depths against higher-yielding units as bearish sentiment toward the greenback and the outlook for U.S. interest rates gripped markets.

European stockbrokers may find it hard to escape unscathed as sweeping regulatory changes lead to a boom in the use of high-tech systems designed to remove the human element from trading and radically reshape markets.

The dollar was flat against the euro on Friday, supported by a six-month high in U.S. consumer sentiment, even though an unexpected fall in retail sales last month and troubles in credit markets loomed.

The S&P 500 index climbed to a record on Friday, surpassing levels reached during the Internet bubble, as General Electric Co. increased a stock-buyback plan and data showed improving consumer sentiment.

Blue-chip stocks rose on Friday, sending the Dow to a record, as General Electric Co's expanded share repurchase plan and a stronger-than-expected reading of consumer sentiment tempered worries about the economy's health.

Idenix Pharmaceuticals Inc. said on Friday it has written off its experimental hepatitis C drug after U.S. regulators ruled that the risks associated with the drug outweigh the benefits.

Two urban commercial banks in China plan to issue IPO The Bank of Nanjing Co. and Bank of Ningbo Co. plan to raise a combined 11.07 billion Yuan ($1.46 billion) through initial public offerings, the first batch of urban commercial Chinese banks to list in local stock exchanges.