Wall Street, European shares fall on Spanish, Chinese data

US stocks closed their worst two-week slide since November with a selloff on Friday as disappointing China growth data sparked worries the global recovery was flagging.

Concerns that Europe's debt crisis was flaring up again added to selling pressure. Sectors taking the hardest hit were those most closely linked to growth, including materials, energy and financials.

The Dow Jones industrial average tumbled 136.99 points, or 1.05 percent, to 12,849.59 at the close. The Standard & Poor's 500 Index slid 17.31 points, or 1.25 percent, to 1,370.26. The Nasdaq Composite Index dropped 44.22 points, or 1.45 percent, to 3,011.33.

European shares went into reverse after two days of gains as concerns over euro zone sovereign debt returned with a vengeance, taking a toll on banks, which led the market lower.

Madrid's IBEX 35, which sank 3.6 percent to a three-year low, was the worst hit index across Europe.

Yields on Spain's 10-year bonds rose and the cost of insuring its debt against default breached 500 basis points for the first time as record borrowing by Spanish banks from the European Central Bank underscored fears about national finances.

The FTSEurofirst 300 index of top European shares closed down 16.46 points, or 1.6 percent, at 1,027.73, dropping 2.3 percent over the week - its fourth consecutive weekly loss.

In Asia, Japan's Nikkei share average rose 1.2 percent today, propped up by a rally in Fast Retailing and relief that North Korea's rocket launch ended in failure, but weaker-than-expected growth figures from China weighed on the upside.

China's annual economic growth slowed to 8.1 percent in the first quarter from 8.9 percent in the last three months of 2011.