LONDON (AP) — European stock markets fell Friday and Wall Street was expected to open lower amid mounting concerns about the pace of the U.S. economic recovery following a disappointing earnings update from computer maker Dell Inc.

After being higher earlier in the day, the FTSE 100 index of leading British shares was down 28.44 points, or 0.5 percent, at 5,239.26. Germany’s DAX fell 44.03 points, or 0.8 percent, to 5,658.15 and the CAC-40 in France was 40.82 points, or 1.1 percent, lower at 3,719.40.

Wall Street was set to fall on the open, with Dow futures down 75 points, or 0.7 percent, at 10,252 and the broader Standard & Poor’s 500 futures 9.5 points, or 0.9 percent, lower at 1,084.80. On Thursday, the two main U.S. indexes slid around 1 percent amid mounting concerns about the U.S. economic recovery and an analyst’s downgrade of the chip industry.

Technology stocks led the downward slide on Thursday and are expected to be at the forefront of Friday’s decline after Dell reported a 54 percent drop in net income and a 15 percent decline in revenue in its latest quarter. Both declines were bigger than anticipated and Dell shares were down almost 6 percent in pre-market trading.

Investors have also got a bit anxious over the failure of the S&P; 500 to sustain its break above 1,100 points. Earlier this week, it managed to close above 1,100 for the first time in over a year but its retreat since then is stoking market talk that the rally since March has dried up ahead of the year end.

Neil Mackinnon, global macro strategist at VTB Capital, warned that there are a number of factors pointing to an imminent correction in stock markets — as well as the failure of the S&P; 500 to sustain a break above 1,100, he noted that the Nikkei is down 10 percent from it’s highs and central banks in Asia are taking measures to discourage “hot money” inflow to stem the appreciation of their currencies against the dollar.

“Look for a correction soon with equity markets testing the October lows,” said Mackinnon.

Stock markets have rallied strongly since March’s lows as investors reined in their economic doomsday expectations to factor in a swifter than anticipated global economic rebound, but recent disappointing U.S. housing figures and mixed earnings from some of the country’s leading retailers have dented the optimism. Many investors think stock valuations are now pricing in too rapid an economic recovery.

“There is always the nagging worry that shares have got ahead of the economic recovery, but that was just as valid back in the summer for example and it did not stop the rally,” said David Jones, chief market strategist at IG Index.

“With little on the economic calendar traders may be reluctant to open up too many new positions on a Friday, prefering to wait for the start of a fresh week before re-entering the fray,” he added.

In a speech Friday, the European Central Bank’s president Jean-Claude Trichet cautioned investors that it’s “too early to declare the crisis over,” and warned financial markets that the extraordinary monetary policy measures enacted over the last year or so cannot last for too long.

“They can create dependence — or even addiction — for the recipients,” he said. “Such medicine cannot be a permanent solution.”

The European Central Bank is expected to start withdrawing some of the measures at its next rate-setting meeting in early December — analysts expect the bank to stop 12-month credits at super-low interest rates.

Earlier, Japan’s Nikkei 225 stock average lost 51.79, or 0.5 percent, to 9,497.68 even though the Bank of Japan revised up its forecasts for the world’s second largest economy. Sony Corp. slid 2.4 percent as investors remained unconvinced by CEO Howard Stringer’s plans to turnaround the loss-making electronics giant. Sony is headed for a back-to-back billion dollar loss in the fiscal year ending March, 2010.

Hong Kong’s Hang Seng dropped 187.32, or 0.8 percent, to 22,455.84 and Australia’s benchmark fell 1.3 percent. South Korea’s Kospi was flat while China’s Shanghai index shed 0.4 percent.

Elsewhere, benchmark crude for December delivery fell 71 cents to $76.75 a barrel while gold prices rose $4.30 to $1,144.1 an ounce. Earlier this week, gold prices rose above $1,150 an ounce for the first time ever.

The dollar was steady at 89 yen while the euro dropped 0.7 percent to $1.4813.

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AP Business Writer Stephen Wright in Bangkok contributed to this report.