Wall Street hovers at highs; profit-taking eyed

The S&P clung to a two-year high as investors predicted a pause as volumes are expected to dry up in the days ahead, and after a 5 percent gain already so far in December.

The Dow Jones industrial average dropped 7.34 points, or 0.06 percent, to 11,491.91. The Standard & Poor's 500 Index gained 1.03 points, or 0.08 percent, to 1,243.90. The Nasdaq Composite Index rose 5.66 points, or 0.21 percent, to 2,642.97.

European shares fell, with banks down after Moody's slashed Ireland's credit rating, sparking renewed worries about the euro zone debt crisis, while AstraZeneca fell as a heart medicine failed to win approval.

The pan-European index is up 5.5 percent so far this month, on track to post its biggest monthly gain since March, having hit near-27 month highs earlier this week,

Japan's Nikkei average stayed flat after gaining around 0.9 percent on the week, as losses in trading companies offset gains in banks spurred by foreign buying and hikes in the real estate sector boosted by the Bank of Japan buying scheme.

The Nikkei was almost unchanged shedding 0.07 percent or 7.46 points to 10,303.83, not far below a seven-month closing high of 10,316.77 hit on Tuesday. The broader Topix index as also almost unchanged, losing 0.1 percent to close at 903.14.