In currencies, the dollar managed to firm a little against the mark and yen in the European morning after Thursday's unprecedented round of European interest rate cuts by Germany and 10 other countries joining European economic and monetary union on January 1. The Dow ended down two per cent, pounded by a heavy 8.8 per cent fall in Brazilian stocks after the country's Congress delayed until next year its pension reform plans. The rejection may make it more difficult for Brazil to meet IMF conditions for much-needed aid. Brazil isviewed as a linchpin for the region's financial health, and weakness there hurts US corporate earnings.

Tokyo fared somewhat better than New York but stocks still ended in negative territory as uneasiness over weaker US shares and concerns about a stock offering of Nippon Telegraph and Telephone next week undermined sentiment. A main market focus for the day will be US labour-market data due out at 1330 GMT, which might give a clue whether the Fed will follow Europe and opt for another cut in US rates.

London's FTSE 100 index was down half a per cent towards noon, off its morning lows, though activity was slow amid Brazil fears. ``We've had a typically sluggish start to Friday and the feeling is that life is tough and getting tougher,'' said a dealer.