North American stocks fell Friday as European debt worries continued to cloud prospects for the global economic recovery, sending gold prices ever higher.

The Toronto Stock Exchange’s benchmark index, the S&P/TSX composite, was down 72.42 points, or 0.6 per cent, to 12,044.77 in early trading.

Earlier Friday, Statistics Canada reported manufacturing sales rose more than expected in March, led by shipments of food and motor vehicles. Sales were up 1.2 per cent to $44.5 billion during the month, with increases recorded in 12 of 21 industries, the federal agency said.

“This report suggests that the Canadian manufacturing sector regained its swagger in March after losing some momentum in February,” said Millan Mulraine, senior strategist at TD Securities.

On the New York Mercantile Exchange, crude oil fell to $73.52 U.S. a barrel from $74.40 U.S. at the end of trading Thursday. Meanwhile, gold continued to gain strength as a safe haven from sovereign debt concerns, trading at $1,244 U.S. an ounce, up from $1,229.20 U.S..

The Canadian dollar was trading at 97.28 cents U.S., down from Thursday finish of 97.99 cents U.S..

In the U.S., the Dow Jones industrial average was down 111.78 points, or 1.05 per cent, to 10,661.80, while the Nasdaq composite index lost 35.33 points, or 1.47 per cent, to 2,358.40.

Before markets opened Friday, the U.S. Commerce Department reported retail sales increased more than expected in April, up 0.4 per cent following a revised 2.1 per cent jump in March.

“Given the unexpectedly strong March retail sales results, some reversal in the April report was expected,” said Jennifer Lee, senior economist at BMO Capital Markets. “It is best to look at the last few months as a better indication of how consumer spending is faring and as the chart below shows (total sales is the red line, core sales is the blue), it is faring fairly well.”

Overseas markets were also lower Friday. London’s FTSE 100 index was down 98.94 points, or 1.82 per cent, to 5,333.47 at midday. In Frankfurt, the DAX fell 80.47 points, or 1.28 per cent, to 6,171.72, and the Paris CAC was down 92.31 points, or 2.47 per cent, to 3,639.33.

“Investors are having to recognize that as economies start to get to grips with the important fiscal cuts needed to reign in deficits, consumers will have less cash to spend and this could impact on company earnings and economic growth,” Joshua Raymond, market strategist at City Index, told Reuters.

In Asia, the Nikkei stock average in Tokyo ended down 158.04 points, or 1.49 per cent, to 10,462.51, while Hong Kong’s Hang Seng finished down 277.03 points, or 1.36 per cent, to 20,145.43.

On Thursday, the S&P/TSX composite index closed down 79.38 points, or 0.65 per cent, to 12,116.59. The Dow was down 113.96 points, or 1.05 per cent, to 10,782.95 and the Nasdaq fell points, or 1.26 per cent, to 2,394.36.