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Stocks on Monday suffered their biggest drop since November after a strong showing in Italian elections by groups opposed to the country's economic reforms triggered worry that Europe's debt problems could once again destabilize the global economy.[+]

The euro hit a six-week low on Friday after banks paid back less than expected of their ECB crisis loans, while European shares recovered some of the previous session's sharp losses as investors went in search of bargains. Euro zone banks paid back just over 61 billion euros ($81 billion) of the 530 billion they took last year in the second of the ECB's twin-funding injections, well below the 130 billion euros expected by traders polled by Reuters.[+]

U.S. Federal Reserve officials are likely to press on with their bond-buying stimulus program even though some harbor growing concerns the purchases could fuel an asset bubble or inflation if pushed too far. A full-throated debate among U.S. central bankers over the wisdom of ongoing quantitative easing, or QE, sent U.S. stock prices down sharply when minutes of the meeting were released on Wednesday.[+]

European shares retreated on Wednesday after the previous session's sharp gains, digesting a crop of weak corporate earnings and as traders cited caution ahead of the minutes to the U.S. Federal Reserve's January policy meeting. Germany's biggest airline Deutsche Lufthansa shed 2.4 percent after it announced plans to suspend its dividend payment, while posting a net profit of 990 million euros ($1.32 billion) in 2012.[+]

Asian shares scaled their highest levels since August 2011 on Wednesday after an improving global economic outlook whetted investor appetite for risk, while the yen firmed amid doubts over Japan's commitment to drastic reflation. Asian shares have been on an uptrend as risks from the euro zone debt crisis and the U.S. fiscal impasse abated and signs of recovery emerged in major economies including China. Corporate earnings have also been generally positive.[+]

Philippine and Australian shares scaled new heights on Tuesday but other Asian shares were mixed, with worries about the risk of an inconclusive outcome in Italy's election and about U.S. budget talks limiting the upside after strong rallies in early February. European markets looked set to inch higher, with financial spreadbetters predicting London's FTSE 100, Paris's CAC-40 and Frankfurt's DAX would open up 0.1 percent.[+]

The S&P 500 dipped in a late decline on Friday as Wal-Mart dropped following a report of a weak start to February sales, though the index just barely extended its streak of weekly gains to seven. Equities were little changed for much of the session, with investors finding few reasons to make big bets following an extended rally on Wall Street, but stocks turned lower in afternoon action.[+]

The yen weakened across the board on Monday, edging near a 33-month low versus the dollar, after Japan escaped direct criticism from its G20 peers on bold reflationary plans that have seen the yen falling. The Japanese currency dropped further after Prime Minister Shinzo Abe said buying foreign bonds could be among options for the Bank of Japan.[+]

The Group of 20 major economies struggled on Friday to find common ground on currencies and borrowing, exposing rifts between advocates of a dash for growth and supporters of more austerity to revive the world economy. A meeting in Moscow of finance officials from the G20 nations, which account for 90 percent of the world's gross domestic product and two-thirds of its population, looked likely to be dominated by sparring over Japan's expansive policies that have driven down the value of the yen.[+]

The yen firmed against the euro and dollar in Asian trading on Friday as markets braced for more conflicting comments on currencies as officials from the Group of 20 nations gathered in Moscow. The yen was also underpinned by expectations that Japanese Prime Minister Shinzo Abe is close to selecting Toshiro Muto as his nominee for Bank of Japan governor. A decision could come in the next few days, sources close to the process told Reuters.[+]