World stocks fell on Friday on news the U.S. economy grew more slowly than expected in the last quarter of 2011, while the euro rose on hopes of an imminent deal on Greece's debt that could help avert a disorderly default.
The United States, the world's biggest economy, grew at an annualized 2.8 percent pace late last year, the fastest quarterly rate in 1-1/2 years. But it fell short of economists' forecast, fueling worries about U.S. growth in 2012 and bets that the Federal Reserve would need to provide more help.
Fed Chairman Ben Bernanke this week painted a picture of an economy mired in slow growth, and the Fed delayed the timing for an interest rate hike until at least late 2014. He also suggested the U.S. central bank is open to buying more bonds in a bid to stimulate borrowing and investments.
"Today's GDP numbers, while positive, indicate that the economy is not really doing all that well, and Chairman Bernanke's extreme policy may be in fact what's needed," said Michael Sheldon, chief market strategist at RDM Financial in Westport, Connecticut.
Dow Jones Industrial Average (^DJI)
-DJI| Prev Close: | 12,734.63 |
|---|---|
| Open: | 12,733.95 |
| Day's Range: | 12,630.87 - 12,733.95 |
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| 52wk Range: | 10,362.30 - 12,928.50 |
