Around 10 a.m. the Dow Jones Industrial Average was 10.56 points lower at 7,621.97. On the New York Stock Exchange, advances beat declines 1,231 to 1,059 on trading volume of 107 million shares. The Nasdaq Composite fell 9.68 points to 1,602.65 and the S&P 500 Index traded 1.99 points higher at 988.38.

Meanwhile, the dollar was left reeling in Europe on Friday as steep falls in US and European stock markets heightened speculation of further US interest rate cuts to stem global market turmoil. The dollar fell over 1 per cent to test a fresh 19-month low against the mark in morning trade, amid growing concerns over US vulnerability to the market turmoil.

The bond market eased, hurt by the show of strength in stocks. The losses were somewhat trimmed by a weaker-than-expected September jobs report, whichraises the possibility of an economic slowdown and future interest rate cuts by the Federal Reserve. The benchmark 30-year Treasury bond fell 6/32 of a point in price, raising the yield to 4.88 per cent. The dollar tumbled to 19-month lows against the German mark overnight as investors speculated that US interest rates will continue to fall. The dollar also eased against the Japanese yen. In stocks, financial issues attempted a brief rebound after two days of heavy beating. But many investors remained uneasy about the sector in the wake of the recent hedge-fund scare. Shares of Citicorp (CCI), which is due to merge with Dow component Travelers (TRV) shortly, eased 3/4 to 87-1/2. Travelers lost 9/16 to 35-3/16. Among other members of the Dow, American Express (AXP) lost 1-9/16 to 71-15/16 and JP Morgan (JPM) fell 9/16 to 80-7/16. Brokerage stocks also showed mixed signs of strength, with Lehman Brothers inching up 3/16 to 27-15/16 and Merrill Lynch (MER) trading 7/16 lower at 43-9/16.

Local markets pickup cue:

Taking cue from the international markets, sentiment in the local kerb markets stooped, dealers said. Operators said the sharp fall in Dow Jones Industrial Index and the subsequent erosion in GDR values of Indian paper led to panic-selling. Bellwether ITC was traded at Rs 681 (Rs 691.25), while Satyam Computers was quoted at Rs 575 (Rs 579.50). State Bank was quoted at Rs 197 (Rs 200.20), while Reliance changed hands at Rs 117 (Rs 118.80).