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US stocks edge higher

New York - Wall Street stocks inched higher on Friday as a surprise narrowing of the US trade deficit offset concerns that China's efforts to cool down its overheating economy would hurt global trade.

The Dow Jones Industrial Average rose 9.99 points (0.09%) to 11 380.05 in opening trades, while the S&P 500 index, a broader measure of the market, climbed 3.15 points (0.26%) to 1 236.15.

The tech-rich Nasdaq climbed 6.47 points (0.24%) to 2 623.00, after reaching its highest level in nearly two years on Thursday.

Shortly before the opening bell, the Commerce Department reported the US trade deficit narrowed more than expected in October to the smallest gap since January, thanks to a surge in exports underpinned by a weaker dollar.

The Commerce Department reported the trade gap stood at a seasonally adjusted $38.7bn, down some 13% from a revised $44.6bn in September.

"The trade balance report for October should certainly help ease the market's fears about the US economy slipping back into recession," said Patrick O'Hare of Briefing.com.

But the optimism was dampened by worrying data from the world's second-largest economy, China.

"Talk of Chinese inflation and a potential rate hike from Beijing could take center stage today, after the People's Bank of China lifted the country's bank reserve ratio once again," said Joseph Hargett of Schaeffer's Investment Research.

China's central bank said on Friday it would raise the amount of money banks must keep in reserve as Beijing steps up efforts to contain inflation, rampant lending and soaring housing costs.

The move came after data released earlier Friday showed property prices and new lending remained stubbornly high in November despite persistent government efforts to stem the flood of liquidity into the Asian giant.

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