On Friday stocks in Europe and Asia rose, trimming the MSCI World Index's first weekly drop in two months, as Barclays Plc led a rally in banks and Japanese machinery orders fell less than estimated. U.S. index futures fluctuated.

Barclays added 9 percent after people with knowledge of the matter said the U.K.'s third-biggest bank is in talks to sell its asset management unit. Irish Life & Permanent Plc gained 5 percent as the mortgage lender reported an improvement in liquidity. Hartford Financial Services Group Inc. rose 10 percent in German trading after the U.S. government approved six insurers for bailout funds.

Banks gained with Standard Chartered Bank rising 1.6 percent, Lloyds advancing 2.9 percent, Royal Bank of Scotland up 5.6 percent and Commerzbank rising more than 3 percent. Defensive sectors such as pharma and telecoms retreated. Shire was down 1.3 percent, GlaxoSmithKline fell 0.8 percent and AstraZeneca slipped 0.9 percent. Miners advanced.

The FTSEurofirst 300 index of top European shares was up 0.6 percent at 840.33 points, extending the previous session's 0.5 percent gains. Across Europe, the FTSE 100 index was up 0.2 percent, Germany's DAX fell 0.2 percent and France's CAC 40 was 0.3 percent higher.

Japanese stocks rose, paring a drop on the week, after Sony Corp. forecast a smaller-than-estimated loss and a government report on machinery orders fueled speculation the global economy is stabilizing.

The Nikkei 225 Stock Average climbed 1.9 percent, to close at 9,265.02 in Tokyo. The broader Topix index rose 2.2 percent, to 881.65. For the week, the Nikkei lost 1.8 percent, while the Topix declined 1.5 percent.

U.S. stock-index futures fluctuated as the Standard & Poor's 500 Index headed for its first weekly decline in three weeks on speculation a two-month rally may have outpaced earnings and economic growth.