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NEW YORK – Stocks dipped Friday after China moved to curb inflation after days of speculation.

The Dow Jones industrial average fell about 15 points in late morning trading. With no major economic reports due out in the U.S. Friday, investors were again focusing on overseas news.

"As long as the Chinese government takes more restrictive actions, that's going to be somewhat of a roadblock for equities," said Alan Gayle, a senior investment strategist at RidgeWorth Investments.

The Chinese government told banks they must hold more reserves. The move is aimed at cutting down on lending to avoid speculative bubbles and curb inflation. Inflation in China shot up to a more than two-year high last month.

There is also growing expectation China will raise key interest rates soon as part of the inflation fight.

Raising bank reserve requirements and hiking interest rates could slow China's robust economy. Expansion in China has been vital to global growth and corporate profits because of sluggish recoveries elsewhere around the world, particularly in the U.S. and parts of Europe.

It was the second time China forced banks to raise reserves in the past two weeks.

Commodity prices fell slightly because of the China news. The country is such a large importer of raw materials that any signs of a potential slowdown in its economy dampen demand for oil, metals and other commodities.

"China is doing what's best for China," said Chris Hobart, founder of Hobart Financial Group. But he said such actions aren't necessarily good for anyone else.

Energy and material stocks fell, following commodities lower. Alcoa Inc. dropped about 1 percent. Big oil companies like ExxonMobil Corp. and Chevron Corp. were also down about 1 percent.

The Dow fell 15.14, or 0.1 percent, to 11,166.55 in late morning trading.

The Standard & Poor's 500 index fell 2.20, or 0.2 percent, to 1,194.49, while the Nasdaq composite index fell 3.13, or 0.1 percent, to 2,511.27.

Stocks pulled back slightly a day after the Dow surged 173 points. Thursday's rally was tied to growing confidence Ireland was close to agreeing to the parameters of a bailout to help it avoid possible default on its mounting debt. Strong demand for General Motors Co.'s initial public offering also sparked buying in stocks, which had struggled earlier in the week.

Irish leaders continued to meet Friday with European Commission, European Central Bank and International Monetary Fund leaders to hammer out a support plan. Ireland was crippled after it took over three national banks following a collapse of the country's housing market.

It is on the brink of joining Greece as the second European country to need financial support because of a bailout. However, Greece's rescue was made necessary by runaway spending.

There are still lingering concerns that other countries like Portugal, Spain and Italy could also eventually need financial aid as their economies struggle and questions remain about how they will refinance or repay debt.

But confidence that Ireland will get needed support helped strengthen the euro Friday. It briefly rose back above $1.37, after falling below $1.35 earlier this week.

Britain's FTSE 100 fell 0.7 percent, Germany's DAX index dropped 0.1 percent, and France's CAC-40 fell 0.3 percent.

Meanwhile, U.S. Treasury prices were mixed. The yield on the 10-year Treasury note, which moves opposite its price, fell to 2.89 percent from 2.90 percent late Thursday.

Its yield is often used as a benchmark to set interest rates for mortgages and other loans. Earlier this month, the Federal Reserve announced a plan to buy $600 billion in Treasurys to drive interest rates lower in an effort to spark spending and lending.

Fed chairman Ben Bernanke vigorously defended the program in a speech Friday from critics who said the move would devalue the dollar and give American companies an advantage in global trade.

Interest rates fell sharply in the weeks leading up to the Fed's announcement of the program on Nov. 3, but have steadily risen over the past two weeks.

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