Markets turn higher Friday

The Fed's new rate for emergency bank loans is 0.75 percent. The Fed said the change should not have direct influence on consumer or business loans but investors took the news as an early warning that easy government credit would someday be gone.

Markets dipped early but recovered as the Commerce Department said inflation was held to 0.2 percent in January over December on a seasonally adjusted average.

In early afternoon trading, the Dow Jones industrial average added 34.39 points, 0.33 percent, to 10,427.29. The Standard & Poor's 500 rose 0.4 percent, 4.43, to 1,111.18. The Nasdaq composite index gained 0.27 percent, 6.15, to 2,247.86.

The benchmark 10-year Treasury rose 1/32 to yield 3.805 percent.

The euro fell to $1.3575 from Thursday's $1.3613. Against the yen, the dollar rose to 91.84 yen from Thursday's 91.27 yen.

In Japan, the Nikkei 225 index lost 2.05 percent, 212.11 points, to 10,123.58.

In Britain, the FTSE 100 index rose 0.62 percent, 33.08, to 5,358.17.

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