US stock markets were holding steady on Friday even as critics began to unpick the announcements that followed Thursday's breakthrough talks on the European debt crisis.
The Dow was down 0.05% by lunchtime but was still on track for its largest monthly gain since 1999. In London the FTSE 100 closed for the week, down just over 10 points on the day at 5702.24 but well above the 5000 mark it stood at a month ago.
The relative calm in the markets came even as credit rating agency Fitch said Greek debt would remain "junk" even after the European agreement to half what it owes the banks and a sale of Italian government bonds showed investors were still wary about the European crisis.
The Italians sold €8bn of debt this morning - the first eurozone bond auction EU leaders summit and the country's 10-year borrowing costs topped 6%, the highest rate since Italy joined the euro.
The sale will put further pressure on Silvio Berlusconi's precarious governmental alliance. Italian finance minister Guilio Tremonti is already under pressure to bring down borrowing costs. Italy has been downgraded by the three main credit rating companies during the past month and has to repay €298bn of debt next year, more than any other euro member.
In a note to investors Fitch too poured cold water on the European crisis talks. The rating agency broadly welcomed the EU plan to asks private creditors to take 50% "haircuts" on their holdings of the country's bonds. But the agency said: "Greece would still have a large amount of debt outstanding, its growth prospects are weak and its willingness to implement structural reforms may dissipate."
The latest Euro news came as Klaus Regling, the head of euro-bailout fund the European financial stability facility (EFSF) met with Zhu Guangyao, a Chinese vice-finance minister, in Beijing Friday. European leaders, led by France's Nicholas Sarkozy, are trying to persuade the Chinese to invest more money in the EFSF.
Euro leaders are seeking to increase ESFS from about €250bn to up to €1,000bn and considering the creation of a special fund in which countries such as China could invest. Regling played down any expectations of an imminent announcement.
With the drama in Europe now entering a quieter phase economists said US investors were once more focussing on their home market. The commerce department reported on Friday that personal consumption expenditures climbed by 0.6% in September. That followed a 0.2% rise in August. The news was the second sign in days of rising consumer spending and followed the latest gross domestic product figures which showed a similar tick up.
But once more the signs of recovery were mixed. The department also reported that spending had outstripped rises in income, showing that buyers had dipped into savings to finance purchases. The news came as Whirlpool, the largest household appliances group, announced it was cutting 10% of its workforce amid weak demand.
Paul Ashworth, US economist at Capital Economics, said: "With the European summit out of the way, the focus in US markets will be back on domestic developments." The Federal Reserve monetary policy committee meets next week and key employment figures are due for release next Friday.