4:00PM New York, 10:00PM Frankfurt, 1:30 AM Mumbai

Market averages in New York closed higher on the productivity report and the Fed decision to leave rates unchanged. European markets closed higher. Asian markets closed lower but Australia and Philippines advanced.

Dow Jones closed up 35.52 to 13,504.30, Nasdaq advanced 14.27 to 2,561.60, and S&P 500 increased 9.04 to 1,476.71.

FTSE 100 Index in the U.K. closed up 119.70 to 6,308.80, in Tokyo Nikkei 225 closed at 16,921.77, up 7.31, and in Brazil, iBovespa closed up 762.59 or 1.44% to close at 53,853.69.

Yields edged higher on 10-year U.S. bonds and closed at 4.79% and 30-year bond rose to close at 4.94%.

Crude oil increased 32 cents to close at $72.42 per barrel, natural gas closed 1 cent lower to $6.20 per mBtu, and gasoline futures increased 1.83 cents to close at 194.42 cents per gallon.

Gold traded 60 cents higher to close at $683.90 per ounce, silver down 6 cents to close at $13.09 per ounce, and copper futures gained $24 to close at $7,815 per metric ton.

In New York trading averages climbed fractionally higher after digesting reports on productivity and Fed decision to leave the rates unchanged. Labor Department reported non-farm productivity gained at 1.8% rate and unit labor cost rose at 2.1% in the second quarter at annualized rates. The productivity rates were revised lower since 2004. Private economists think that the economy needs to increase productivity at or above 2%.

Wynn Resorts reported earnings of $89.6 million, up 10.5% from a year ago in the second quarter or 82 cents a share from a loss of $20.1 million or 20 cents per share. The company revenue jumped to $687.5 million from $273.4 million.

DreamWorks Animation (DWA: chart) fell 8% on the report that Paul Allen, major shareholder plans to sell 10 million shares in public offering.

Cisco Systems reported fourth quarter net income of 31 cents per share or $1.93 billion compared to 25 cents a share or $1.54 billion on revenue rise of 18% to $9.43 billion.

Of the 30 stocks in Dow 21 closed higher and 9 declined. General Motors led stocks in the average with a gain of 3% followed by ExxonMobil with a rise of 2.6%. Boeing led the decliners with a loss of 1.37% followed by 1.2% fall in Hone Depot. Of the 500 stocks in S&P 500 index, 304 stocks gained, 191 fell, and 5 declined. Tenet Healthcare led the decliners in the index with a loss of 15% followed by 7% fall in Dean Foods, and 6% decrease in International Flavors & Fragrances and Convergys Corp. Interpublic Group led the gainers with the rise of 16% followed by 8% gain in Pulte Homes, and 7% increase in BMC Software and First Horizon National.

Asian markets closed lower but select emerging markets managed to close higher. Philippines led the region with a gain of 2.8% followed by 1.1% rise in Australia and fractional gains in India, Japan, and Korea. Taiwan with a loss of 0.9% led the decliners in the region followed by 0.7% in Indonesia, followed by fractional losses in Thailand, Singapore, and Hong Kong. The Shanghai Composite gained 0.5% bucking the regional trend of lower markets for the last one week.

In Latin Markets trading Mexico led the region with a gain of 1.74% followed by 1.34% increase in Brazil, and 0.7% advance in Argentina.

In Sao Paolo trading of the 59 members of the iBovespa index 41 closed higher and 18 declined. Telecom stocks led the decliners. TIM led the decliners with a loss of 3% followed by 2.5% decline in Tele Norte Leste, and 1.6% fall in Telesp. Real estate company Cyrela jumped 10% followed by 6% rise in Embraer, and 5.5% gain in CCR.

1:00PM NY, 5:00 PM Frankfurt European markets gained ground, boosted by financial stocks.

European stock markets gained ground on Tuesday, boosted by strength in the financial sector, as well as gains in the shares of airlines Air France-KLM and easyJet. Investors expected signals from the Federal Reserve that credit market losses are slowing U.S. economic growth and as a result borrowing costs will fall. Regional indexes climbed, led by the U.K. with an advance of 1.9%, France rising 1.6% and Germany, up 0.9%.

A broker upgraded the European banking sector to overweight from neutral, saying that it now sees considerable potential upside for sector share prices after the recent market correction. Spanish banks Santander and BBVA rose 2.7% and 2%, respectively. Credit Suisse Group jumped 5.2% in Switzerland.

In Frankfurt the financial service sector advanced; with property finance firm Hypo Real Estate rising 4.4%. Commerzbank shares jumped 5.2% after a broker upgrade of the sector. Banks also performed well, with Deutsche Bank rising 3.9%.

In Paris BNP Paribas was a notable gainer among bank shares, posting an advance of 3.8%. Societe Generale followed suit, jumping 3.2%. Dexia, owner of bond insurer Financial Security Assurance, gained 3.3%. Air France-KLM Group added 3.4% after Europe''s biggest air carrier said passenger traffic rose in July on increased travel to the Americas and Asia.