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By Lewis Krauskopf and Tommy Wilkes

NEW YORK / LONDON (Reuters) – European stock markets fell on Friday and major U.S. indexes were little changed, as concerns over the fallout from debt-heavy China Evergrande persisted, while U.S. bond yields rose after the hawkish positions of central banks.

The MSCI gauge of stocks across the world fell 0.20% after three days of gains, leaving little change for the week.

Concerns over whether Evergrande’s distress could spill over into the wider economy loomed over markets this week. Evergrande’s electric car unit has warned that it faces an uncertain future unless it receives a quick injection of cash, the clearest sign to date that the property developer s liquidity crunch. ‘worsens in other parts of its activities.

“If you look back this week, global markets have a lot to digest,” said Matthew Miskin, co-chief investment strategist at John Hancock Investment Management.

“There is still no clarity on how China will address cracks in its credit markets.”

On Wall Street, the Dow Jones Industrial Average lost 4.97 points, or 0.01%, to 34,759.85, the S&P 500 gained 1.89 points, or 0.04%, to 4,450.87 and the Nasdaq Composite lost 22.91 points, or 0.15%, to 15,029.34.

Gains in cyclical S&P 500 sectors such as financials and energy offset declines in technology and health care groups.

The pan-European STOXX 600 index lost 0.90%, as weak German business confidence data also weighed on.

“Part of the reluctance in European markets could also be blamed on the German election, which promises to be the most interesting in a while,” said Chris Beauchamp, chief market analyst at IG.

Investors were also appraising a busy week of central bank meetings across the globe, arguably including more hawkish positions from the US Federal Reserve, as well as UK and Norwegian policymakers.

Benchmark 10-year US Treasury yields hit their highest level since July 2. Ratings fell 13/32 for a return of 1.4526%, down from 1.41% Thursday night.

“A week of central bank action has shown us that policymakers are ready to bring accommodative monetary policies introduced during the pandemic under control,” ING analysts wrote in a note to clients.

The dollar index rose 0.22% and was on track for a third straight week of gains, with the euro down 0.19% to $ 1.1714. The Japanese yen weakened 0.39% against the greenback to 110.75 per dollar.

Oil prices have risen, with Brent hitting an almost three-year high, supported by disruptions in global production and inventory drawdowns.

US crude rose 0.93% to $ 73.98 a barrel and Brent to $ 77.97, up 0.93% on the day.

Spot gold added 0.5% to $ 1,750.92 an ounce.

(Additional reporting by Anushka Trivedi, Sruthi Shankar and Shreyashi Sanyal in Bengaluru, Alun John in Hong Kong, Dhara Ranasinghe, Elizabeth Howcroft and Marc Jones in London; Editing by Robert Birsel, Chizu Nomiyama, Andrew Heavens and Dan Grebler)