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US stocks lost more ground Friday taking losses for the month to their worst level since February 2009. The tech stocks led the retreat as investors pulled back on concerns the economic recovery is unsustainable at 2009 levels.

On Friday the market jumped out of the blocks on stronger than expected GDP, however drifted lower throughout the day as China’s plan to cap lending and Obama’s proposal to regulate the banking industry outweighed the earlier good news.

Earnings results this quarter are on track to be, on average, four-fold higher than the previous corresponding period.

GDP grew at an annual rate of 5.7%, double its third quarter rate, while in other economic indicators the consumer sentiment out of the University of Michigan and the Chicago PMI both outstripped expectations.

The Dow Jones shed 53.13, or 0.52% to 10,067.33. The S&P 500 dipped 10.66, or 0.98% to 1,073.87 while the tech-heavy NASDAQ lost 31.65, or 1.45% to 2,147.35.

Among the banks, Citigroup rallied 2.5%. Wells Fargo was effectively flat.

The investment banks performed worse however, with Goldman Sachs down 3% and Morgan Stanley shedding 2.6%.

Microsoft posted better than expected quarterly sales on the back of its Windows 7 software, however its shares still slumped 3.4%.

Apple was unable to maintain enthusiasm from the release of its new iPad computer earlier in the week. Its shares lost 3.6%.  

Search engines Google and Yahoo! shed 0.8% and 2.8% respectively.

Retailers were mixed. Wal-Mart tacked on 1.6%. Macy’s rose 1%.

In the negative Sears and Costco lost 1.3% and 1.2%.

Online retail giant Amazon.com gave up 0.5% despite also beating the street’s expectations on quarterly earnings.

COMEX gold for February delivery fell US60 cents to US$1,083 an ounce.

NYMEX light crude oil for February delivery fell US75 cents to US$72.89 a barrel.

Exxon Mobil shed 0.8%, while Chevron and ConocoPhillips lost 1.5% and 0.7% respectively.

European Markets

European stocks countered losses on Wall Street, however their overall performance for the month of January was, like the US, their worst since February 2009. The dismal economic state of European Union member Greece rattled investor confidence, as did Chinese lending restrictions, though investors on Friday got comfort from solid US earnings reports.

The UK benchmark FTSE 100 gained 42.78, or 0.83% to 5,188.52. The French CAC40 lost 50.67, or 1.37% to 3,739.46, while Germany’s DAX rallied 68.46, or 1.24% to 5,608.79.

In a look around the European bank stocks, in the UK Barclays and HSBC put on 2.1% and 2.6%, though RBS shed 0.8%.

In France Societe Generale and BNP Paribas added 0.9% and 2.1%. Germany’s Deutsche Bank climbed 1.4%.

There was good news for the much-maligned Greek banks, with the National Bank and Alpha Bank surging 5% and 8.8% respectively.

Italian automaker Fiat slumped 7.7% after predicting a 12% slump in the European car market.

Germany’s Daimler Chrysler, however, surged 3.4%. French carmakers Peugeot and Renault climbed 1.4% and 0.9%.

Europe’s second largest clothes maker Hennes & Mauritz AB surged 9.1% after posting a US$834 million net profit in the fourth quarter.

Miners generally rose despite a fall in metal prices on the LME Friday.

Aussie peers Rio Tinto and BHP Billiton climbed 1.3% and 1.5% respectively.

Xstrata and Anglo American climbed 2.7% and 1% respectively.

Japanese Markets

Japan’s Nikkei closed at a six-week low as disappointing earnings results dragged the index lower. Exporters struggled on fears the greenback would continue to weaken, therefore impact earnings.

The Nikkei 225 fell 216.25, or 2.08% to 10,198.04.

Advantest Corp sank 10.2% after forecasting a larger annual loss than consensus estimates.

Toyota lost 2% as the automaker extended a recall of millions of vehicles to Europe and China.

Honda weakened 2.1%, while electronics companies Canon and Sony dropped 3.9% and 2.4%.

Nintendo shed 4.1% as a decline in software sales for its DS handheld game player and price cuts for its Wii console resulted in a 23% fall in quarterly profit.

Nippon Steel fell 1.5% as the steelmaker forecast its first annual loss in seven years due to a slump in local building.

Fanuc gained 1.8% after increasing its full-year earnings outlook, citing a significant recovery in demand.

Hong Kong Market

The Hong Kong markets ended the week and month lower Friday, helping the Hang Seng to its worst month out of the last 15. Stocks retreated on US unemployment figures, while Li & Fung surged as it aims for US$20 billion in revenue this year.

The Hang Seng lost 234.38, or 1.15% to 20,121.99.

Among the banks, Bank of China was down 1.3%. ICBC was down just over 2% and Bank of Communications was 1% cheaper.

HSBC, which makes up one-sixth of the market, lost 1.7%.

Li & Fung surged 10.2% after signing a fresh deal with Wal-Mart rumoured to be worth US$2 billion a year.

Shoemaker Yue Yuen Holdings slid 3.2%.

The shippers lost ground. China Cosco slumped 3.5% and Cosco Pacific shed 4.2%. The Baltic Dry Index, a measure of shipping costs, has slumped more than one-third since mid-November.

Coal miners were also down. China Shenhua Energy Co slid 1.8%. Yanzhou Coal Mining Co, gave up 3.3%.

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