US existing home sales rose by 5.0pct to a 4.61 million annual rate in December, close to forecasts centred on a result near 4.65 million. The weekly Economic Cycle Research Institute index rose from 121.2 to 123.4.

Negotiations are continuing on a debt swap plan between Greece and its private sector creditors. Chief negotiator, Charles Dallara, said he was confident a deal would be reached.

European shares eased slightly on Friday but still managed to record the fifth straight week of gains. End week profit-taking was balanced with optimism about a debt deal between Greece and private sector bond holders. The FTSEurofirst index fell by 0.3pct but was up by 2.5pct over the week. The UK FTSE and German Dax both eased by 0.2pct on Friday.

US blue-chip shares rose on Friday, buoyed by solid earnings results from IBM and Intel. But weaker-than expected earnings from Google weighed on the Nasdaq. Shares in IBM rose by 4.4pct, Intel gained 2.9pct, General Electric was unchanged, Microsoft gained 5.7pct but Google fell by 8.4pct. The Dow Jones rose by 96 points or 0.8pct with the S&P 500 up 0.1pct but the Nasdaq eased by 1.6 points or 0.1pct. Over the week the Dow Jones rose by 2.4pct with the S&P 500 up 2.0pct and Nasdaq up 2.8pct.

US longer-term treasuries eased on Friday (yields higher) as investors continue to shift funds from government bonds to equities in response to good corporate earnings results. Traders also squared positions ahead of US$99 billion of new supply in the coming week and Federal Reserve meeting. US 2yr yields were flat near 0.24pct and US 10yr yields rose by 5pts to 2.02pct. Over the week US 2yr yields rose by 1.7pts and US 10yr yields rose by 15pts.

Major currencies were mixed on Friday after investors weighed up a gamut of news stories. The Euro fell from highs near $1.2985 in European trade to around US$1.2890 but recovered to finished US trade near US$1.2930. The Aussie dollar rose from lows near US103.80c in European trade to US104.90c, and finished US trade near US104.80c. And the Japanese yen lifted from 77.29 yen per US dollar to JPY76.91, and closed US trade near JPY76.94. This morning the Aussie is at US104.6c and US$1.2885.

World crude oil prices eased on Friday. Data showed that US gasoline demand has fallen to decade lows while the Chinese manufacturing sector contracted slightly again last month. Nymex crude oil fell by US$1.93 or 1.9pct to US$98.46 a barrel and London Brent crude fell by US$1.69 to US$109.86 a barrel. Over the week Nymex fell just 0.2pct and Brent fell 0.5pct.

Base metals were mixed on Friday as investors took profit and squared positions at the end of the week. Nickel rose 1.3pct and lead rose 0.1pct but other metals fell 0.1-1.8pct. Over the week metals rose strongly, up between 2.7-8.7pct with lead up the most and zinc up the least. And the gold price rose on Friday with technical factors and hopes for a deal between Greece and private sector creditors driving trade. The Comex February gold price rose by US$9.50 or 0.6pct to US$1,664.00 an ounce. Over the week gold rose by US$33.20 or 2.0pct.

Ahead: In Australia, the producer price index is released. In the US, no major economic data is scheduled.