Stocks pause as fiscal cliff boost fades

Written By limadu on Jumat, 30 November 2012 | 17.42

Click on chart for more premarket data.

NEW YORK (CNNMoney) -- Could the fiscal cliff talks be helping stocks?

That's a stretch, of course. Disaster may still loom. Markets have reacted well this week as negotiations in Washington picked up speed.

Take Thursday -- Speaker John Boehner said "no substantive progress" had been made in talks. Yet U.S. markets still ended in positive territory. But the impact on sentiment may now be fading.

Asian markets played catch up Friday, but were also helped by the approval of a new stimulus package in Japan and expectations of strong Chinese factory data due over the weekend. Extending weekly gains, the Nikkei rose 0.48%, the Hang Seng advanced 0.49% and even the struggling Shanghai Composite posted a small advance.

European stocks were narrowly firmer in early trade, while U.S. stock futures held steady.

Friday could be a relatively quiet trading day, as investors stay tuned to the latest developments in Washington. In Europe, unemployment figures are likely to make for more grim reading.

Before the bell Friday, reports are due on personal income and spending for October.

Shares of Zynga (ZNGA) tumbled 13% in after-hours trading Thursday on news that the terms of its deal with Facebook (FB) had substantially changed.

Yum! Brands (YUM, Fortune 500) shares fell 7% after hours after the firm softened its expectations for China, predicting that same-store sales in that key market would decline 4% in the fourth quarter.

Fear & Greed Index

The dollar slipped against the euro and the British pound but was firmer against the Japanese yen. To top of page

First Published: November 30, 2012: 4:45 AM ET


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