Finance

U.S. Federal Reserve and Bank of Japan officials said they were on alert for signs of deflation and grappling with how the central banks would keep it at bay as interest rates approach zero.

Euro zone demand is plunging and price pressures vanishing, business surveys showed on Friday, while central bankers weighed the prospect of deflation.

European and Asian shares managed to rise and oil rose toward $50 on Friday as expectations of further interest rate cuts helped to cushion deepening gloom about the financial and auto sectors as well as the broader economy.