Market overview for Friday 21st October 2011.

Currencies The U.S. dollar tumbled on Friday and hit a record low against the yen on speculation Europe was closer to solving its debt crisis, but most analysts doubt that policy-makers will produce a comprehensive plan soon. France and Germany said in a joint statement that European leaders would discuss a solution to the crisis at a summit on Sunday, but no decisions would be adopted before a second meeting to be held by Wednesday at the latest. Against a basket of major currencies, the dollar last traded down 0.87 percent at 76.305 compared with 76.249 earlier, the lowest level since mid-September. Against the yen, the dollar fell as low as 75.78 yen, surpassing its previous record low of 75.941 set in August, bringing back into focus the threat of official intervention to weaken the Japanese currency. Against the dollar, the euro rose 0.5 percent to $1.3846, having hit $1.3900 recovering from a low of $1.3703. The euro lost 0.5 percent to 105.35 yen. It slipped 0.4 percent against sterling and shed 0.6 percent versus the Swiss francs.

Energy Oil futures were mixed in thin volume trade on Friday, with Brent pulling back late as investors exercised caution ahead of meetings starting Sunday where European leaders will try to hammer out a plan to address the region's debt crisis. ICE Brent December crude fell 20 cents to settle at $109.56 a barrel, seesawing in post-settlement trading and having retreated after reaching $111.88 and moving above the 100-day moving average of $111.82. Brent crude posted a 4.5 percent weekly loss, after two straight weekly gains. U.S. December crude rose $1.33 to settle at $87.40 a barrel, having reached $88.89. A 60-cent gain for the week was the third consecutive weekly rise. Signs of stronger demand for oil, especially distillate fuels, and a tightening supply picture have recently started to provide a boost to oil prices.

Precious metals Gold rose 1 percent on Friday, breaking a four-day losing streak, as bullion moved in sync once again with riskier assets on optimism European leaders will be able to contain the region's debt crisis. Spot gold was up 1.2 percent at $1,637.39 an ounce. U.S. gold futures for December delivery settled up $23.20 at $1,636.10 an ounce. Silver, which can move in lock-step with gold but more frequently tracks base metals, notched a 3 percent decline this week. It was last up 2.5 percent at $31.26 an ounce. Palladium rose 5 percent to $612.23. The price is down 1 percent this week as concern has increased over the outlook for demand from China, which is key for car sales in the world's largest auto market. Platinum was up 1 percent at $1,506.99 an ounce.

Stock indices The S&P 500 posted its third straight week of gains on Friday, lifted by optimism before this weekend's summit of European leaders and strong earnings from blue-chip stocks. U.S. stocks rose in a broad rally to their highest levels since early August after a volatile week. The Dow Jones industrial average was up 267.01 points, or 2.31 percent, at 11,808.79. The Standard & Poor's 500 Index was up 22.86 points, or 1.88 percent, at 1,238.25. The Nasdaq Composite Index was up 38.84 points, or 1.49 percent, at 2,637.46. Many investors are looking for progress in Europe before earnings can push equities much higher.