U.S. bonds moved lower on Friday as the budget debate that has left much of government shut continued in Washington and weighed on markets.
European shares closed higher on Friday, helped by Italy's FTSE MIB, which continued to rally.
Oil traded with slim gains as the budget standoff in the United States continued and uncertainty about when it would end gripped the market.
Gold settled lower on Friday as the dollar index rebounded from eight-month lows.
The dollar index rose for the first time in six sessions but was within striking distance of a recent eight-month low investors remained cautious.
Asia pared losses on Friday after the Bank of Japan left monetary policy unchanged and as the U.S. government shutdown dragged into a fourth day.
Stocks finished broadly lower Thursday, with the Dow closing below the psychologically-important 15000 mark, after gunshots were fired outside the Capitol building and as the government shutdown dragged into a third day.
Bond prices rose as an ongoing contest in Washington inspired investors to buy U.S. debt, still the most viable safe haven.
European shares closed lower, tracking the downward trend in U.S. stocks as the budget deadlock in Washington continued.
Crude oil was flat to weaker on Thursday, with U.S. oil ending modestly lower as concerns about the economic impact of a U.S. government shutdown offset strong data.
Gold fell on Thursday, as investors booked profits after the previous session's gains.
The U.S. dollar index fell for a fifth straight session against, hitting an eight-month low, as investors fretted about a U.S. government shutdown.
Asian stocks outside Japan were higher on Thursday as positive Chinese economic data overshadowed ongoing woes about Washington's budget stalemate.
Stocks eased off session lows but still closed in the red Wednesday, amid mounting worries that the ongoing budget battle in Washington could eventually lead to a failure to raise the country's debt ceiling.
European shares closed down on Wednesday, as the U.S. government shutdown continued and jobs data came in weak.
U.S. crude prices led the oil complex higher on Wednesday, following a report that TransCanada's Gulf Coast pipeline would be completed by the end of the month.
Gold rose more than 2 percent, recouping most of the previous session's tumble, as a drop in the dollar sparked bargain hunting.
The euro soared to an eight-month high vs the dollar on Wednesday as ECB President Mario Draghi stuck with the bank's current monetary policy stance.
Japanese shares fell to their lowest level in three weeks on Wednesday while fears about a U.S. budget battle weighed on the rest of Asia.
Stocks kicked off the first trading day of the month and quarter with modest gains, lifted by an upbeat manufacturing activity report and as investors seemed to shrug off the first partial government shutdown since 1996.
European shares were flat on Friday as talks over the "fiscal cliff" stalled.
European shares closed lower on Wednesday for a third consecutive session, with resurging worries about the global economic outlook undermining investor sentiment.
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Asian shares dipped on Tuesday following losses on Wall Street after U.S. manufacturing activity hit a three-year low in November.
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