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Traders slowed their selling of euros a bit after knocking the currency down 4 cents in the past week, squaring up before a statement about Ireland that may be issued by Britain and France later in the day.

Asian stock markets were mostly lower as traders took profits on gains this week heading into the weekend.

The possibility of a bailout for Ireland has significantly widened the difference of bond yields of high-risk European countries over those of Germany, and overshadowed a Group of 20 leaders' summit in Seoul, where a breakthrough on resolving global economic imbalances amid incongruent policies looked unattainable.

"The effects of euro zone peripheral bond concerns are spreading through euro zone markets and hitting risk appetite in the process. The euro is a clear casualty, having dropped further against the U.S. dollar and versus other currencies," Mitul Kotecha, global head of currency strategy with Credit Agricole CIB in Hong Kong.

The resurgence of fears about Europe's sovereign debt has added to a shift back into dollars and out of riskier assets.

The euro was down 0.3 percent against the U.S. dollar at $1.3625 after tumbling 0.9 percent on Thursday.

A close below the 200-week moving average of $1.3647 is a grim omen for the euro and paves the way to the next obstacle lower at $1.3558, the September 30 low.

The dollar was down 0.2 percent against the yen, at 82.34 yen.

The dollar has been rebounding ever since the Federal Reserve unveiled its $600 billion plan to buy Treasuries last week Wednesday. The dollar index .DXY, which measures the dollar's performance against a basket of other major currencies, has risen 3.2 percent since then to a 5-week high.

Commodities traders had barely blinked at the dollar's gains earlier in the week but prices succumbed to profit taking on Friday.

Analysts, however, were still looking for bullish moves in metals markets next year.

The rolling 30-day correlation between the U.S. dollar index and the Reuters-Jefferies index of 19 commodities .CRB has moved from -0.90 at the beginning of November to -0.22 on Thursday.

Three-month copper traded on the London Metal Exchange was down 1 percent to $8,732 a tonne after hitting a record high of $8,966 on Thursday.

Some analysts though still think copper prices could trek up to as high as $11,500 next year.

The entertainment conglomerate's stock climbed 2.1 percent after hours on the rosier outlook. The shares ended down 3 percent on Thursday after Disney inadvertently released its disappointing fourth quarter results before the market closed, spooking some investors. It is investigating the matter.

The company, nevertheless, sounded a positive note with analysts.

"The current trends in our business are encouraging. We're also optimistic about our creative pipeline. Thus, we believe we are well positioned to deliver strong results in 2011," said Disney Chief Financial Officer Jay Rasulo on a conference call with analysts.

Disney said ad sales in the current first quarter were pacing up double-digit percentages at both ESPN and TV stations, reflecting a stabilizing economy. It also said U.S. hotel reservations were up 5 percent in the current quarter from a year-ago.

But Wall Street had expected better fourth quarter numbers from a company that has exceeded earnings expectations in each of the past six quarters. Disney's shares have been up about 15 percent this year amid perceptions an advertising recovery was taking hold, outperforming the share performances of both Time Warner Inc (TWX.N) and News Corp, which recently posted strong profits on the advertising rebound.

MESSY QUARTER

"Generally, the forward trends look good and they're entering into the sweet spot of the content and consumer product cycle. Advertising trends also look strong," said David Bank, analyst with RBC Capital Markets, noting the fourth quarter was "messy" due to a calendar shift, writedowns and other items.

Weak fiscal fourth-quarter revenue at Disney's media networks division -- its largest -- offset a boost from smash "Toy Story 3" in its studio unit and robust advertising sales.

"The revenue bright spot that beat our estimate was the studios, mostly on the strength of 'Toy Story 3'" said David Joyce, analyst with Miller Tabak.

The lower revenue at its media networks division was the result of there being one less week in the quarter than last year, and a writedown for programing. Also, sports cable channel ESPN had already recognized a significant amount of revenue from affiliates in the fiscal third quarter of this year after hitting a targeted number of key sporting events, as opposed to in the fourth quarter a year ago. That led to a lower revenue comparison.

Analysts said ESPN recognized $354 million less deferred revenue than the period a year ago, noting the amount was equal to earnings of about 9 cents per share.

Another bright spot was in Disney's broadcasting division, which saw an increase in operating income driven by decreased programing and production costs at ABC and higher advertising revenues and ratings.

Overall, Disney's fourth-quarter net income fell to $835 million, or 43 cents per share, compared with $895 million, or 47 cents per share, a year earlier.

Excluding items, Disney reported earnings of 45 cents a share. Analysts on average had expected earnings of 46 cents a share, according to ThomsonReuters I/B/E/S.

The media conglomerate inadvertently released its results before the closing bell, spooking some investors. Disney's shares ended Thursday down 3.1 percent, and dipped further in after-hours trade. Executives said they were investigating the matter.

Wall Street had expected better numbers from a company that has exceeded earnings expectations in each of the past six quarters, hoping that an improving economy boosted advertising, parks, consumer products and its other businesses.

"There's disappointment for the bulls in the stock," said Matthew Harrigan, an analyst with Wunderlich Securities.

"People had expected stronger numbers in this quarter with somewhat of an uptick in the economy, and we didn't get that."

"The studio, for all the success of 'Toy Story 3,' had a number of movies that didn't work that pulled it back down," he said, citing "Sorcerer's Apprentice" and "Prince of Persia" as underperformers.

Weak broadcasting results were impacted by a calendar shift, resulting in one fewer week in the reporting period, and a programing writedown in its media networks. Also, ESPN had already recognized a significant amount of revenue from affiliates in the fiscal third quarter of this year, as opposed to the fourth quarter of last year.

Analysts said ESPN recognized $354 million less deferred revenue than it recognized in the same period a year ago, noting the amount was equal to earnings of about 9 cents per share.

MOUSE HOUSE FAILS TO DELIVER

Disney's shares have risen about 15 percent this year amid perceptions an advertising recovery was taking hold. But its lower earnings stood in stark contrast to strong showings by Time Warner Inc (TWX.N), CBS Corp (CBS.N) and News Corp, which posted strong profits on the advertising rebound.

Disney's fourth-quarter net income fell to $835 million, or 43 cents per share, compared with $895 million, or 47 cents per share, a year earlier.

Total revenue fell 1 percent to $9.7 billion from $9.9 billion. Analysts on average had forecast revenue of $9.95 billion, according to ThomsonReuters I/B/E/S.

Revenue at the flagship media networks division fell, with the company citing programing writeoffs at A&E/Lifetime as well as the fact that ESPN had already recognized a significant amount of revenue from affiliates after hitting a targeted number of key sporting events in the third quarter as opposed to the fourth quarter last year.

Revenue at its media networks arm, home to sports cable network ESPN and broadcaster ABC, fell 7 percent to $4.4 billion. Operating income in media networks fell 18 percent to $1.2 billion, missing analysts' forecasts for about $1.37 billion, due to programing writeoffs.

Parks and resorts revenue slipped 1 percent to $2.82 billion and operating income slid 8 percent to $316 million, as domestic park attendance fell and it faced higher costs.

Banks have worried that the new rules will prove costly, might breach various national privacy laws and would result in duplication if European amendments follow Britain's lead.

One global investment bank estimated the cost of recording all company BlackBerry phones issued to front office staff at over 2.6 million pounds ($4.2 million) per year, while others argued that market abusers would just seek other avenues.

But in a policy document published on its website, the FSA insisted taping business mobile phones would close off an important route to those attempting insider trading.

"It is our contention that by having as comprehensive a taping regime as possible, we limit the scope or temptation for employees to infringe the market abuse rules on fixed or mobile lines which are not taped," the FSA stated.

"And by taping these previously unrecorded lines, we have an additional source of evidence to draw on, which our experience shows can be of significant value to our investigative and enforcement work," it added.

Although the FSA has stepped up its battle against insider dealing in London, launching arrests, prosecuting and jailing its first offenders, it has its work cut out.

Regulatory data shows unusual share price movements -- a potential indicator of market abuse -- in around 29 percent of takeover announcements.

The British government plans to break up the FSA and roll parts of the regulator, together with the Serious Fraud Office and the Office of Fair Trading, into a single agency to tackle white collar crime.

($1=.6192 Pound)

(Reporting by Kirstin Ridley; Editing by Jon Loades-Carter)

The company, whose shares rose 2.4 percent in premarket trading, also said on Thursday it plans to sell the Rock Band music video game developer Harmonix ending a disappointing foray into the gaming business.

"The results are strong," said Christopher Marangi, an analyst at Gabelli & Co. "The decision to sell Rock Band is welcome news. The franchise has been a disappointment and a drag on earnings."

U.S. advertising revenue rose 8 percent. A strong market for purchasing last minute commercial spots helped push ad revenue up for the third consecutive quarter of improving growth.

Viacom Chief Executive Philippe Dauman credited the rise in revenue to higher ratings at its cable networks. "This creative success coupled with the improving economy has fueled our advertising revenues," Dauman said in a statement.

Viacom's total revenue rose 5 percent to $3.33 billion beating analysts' average forecast of $3.30 billion according to Thomson Reuters I/B/E/S.

Net income for the third quarter was $189 million, or 31 cents per share, compared with $463 million, or 76 cents per share, a year earlier.

Excluding $27 million in one-time tax-related gains, the company's earnings from continuing operations totaled 75 cents a share, beating analysts average estimate of 70 cents per share.

Revenue at its media networks division, home to MTV, Comedy Central and Nickelodeon, rose 8 percent to $2.1 billion. Global affiliate revenue - fees paid by cable, satellite and phone companies - at for the cable networks advanced 10 percent to almost $800 million.

Revenue for film entertainment, which includes Paramount Pictures, rose 1 percent to $1.2 billion thanks to a boost in TV license fees. Worldwide DVD sales fell 13 percent.

Its shares rose 90 cents to $39 in premarket trading.

(Reporting by Jennifer Saba; Editing by Derek Caney)