1:00PM NY European markets closed higher, helped by property stocks.
European stocks ended moderately higher on Wednesday, helped by strength in the real estate sector, which helped offset cautiousness ahead of a decision on U.S. interest rates. Declines from retailers Metro and Inditex also put a floor on gains. Shares in Hammerson, Anglo-French property developer, rose 4.8% on speculations that the company may be in line for a bid either from Unibail of France or a private equity consortium. Among other rising stocks, ABN Amro and its possible merger partner Barclays advanced on analyst comments. However, Bank of Ireland dropped 3.8% after the company said it sees fiscal-year earnings in line with estimates. Retail companies also attracted attention. Inditex closed down 3%, reversing from earlier strength on the back of better-than-expected annual profit. The group plans to invest 850 million to 950 million euros to renovate or open stores. Also on the downside, shares of German retailer Metro lost 3.8%. The company said that its annual profit nearly doubled, helped by the sale of a stake in a home-improvement chain. The U.K. FTSE 100 closed up 0.6% at 6,256.80. The German DAX Xetra 30 added 0.2% at 6,712.06, the French CAC-40 index finished virtually flat at 5,502.18.

Crude oil prices advanced, following a government report which showed another decline in gasoline stockpiles. Light, sweet crude May delivery gained 13 cents to $59.89. The U.S. dollar traded mixed against its major currency rivals. The euro traded unchanged at $1.3307. The dollar bought 117.80 yen, up from 117.25. The British pound traded at $1.9592, down from $1.9609. European gold prices declined. In London gold traded at $658.50 per troy ounce, down from $659.50. In Zurich, the precious metal traded at $656.70, up from $652.85. Silver rose to $13.20, down from $13.34.


11:30AM U.S. stocks traded in a lackluster fashion. FedEx fell 2% on earnings drop.
U.S. stocks lost direction in early Wednesday trading, with many traders staying on the sidelines ahead of the Federal Reserve''s announcement on interest rates. Software and computer hardware stocks moved notably higher. Adobe Systems (ADBE: chart) climbed 3.7% after it reported a 37% profit rise. Oracle (ORCL: chart) rose 3.7% after reporting a better-than-forecast 35% jump in quarterly profit. Semiconductors were helped by SanDisk (SNDK: chart) which gained 3.7%, as the company and Hynix Semiconductor announced a patent cross-license pact. Among other stocks in the spotlight, Morgan Stanley (MS: chart) rose 4% on better-than-expected Q1 earnings and revenue.

On the side of the losers, FedEx Corp. (FDX: chart) slipped 2% after its Q3 earnings came in stronger than expected but the company warned profits in the coming fiscal year could fall below its expectations. Shares of aluminum producer Alcoa (AA: chart) were the biggest drag on the Dow, falling 1.5%. At the same time, shares of AT&T (T: chart) offered the strongest help to the blue-chip average, posting an advance of 1.6%. In late morning trading, the Dow Jones industrial average fell 17.95, or 0.15%, to 12,270.15, after two sessions of gains. The Standard & Poor''s 500 index rose 0.36, or 0.03%, to 1,411.30, and the Nasdaq composite index advanced 0.88, or 0.04%, to 2,409.09. Bonds fell ahead of the Fed decision. The yield on the benchmark 10-year Treasury note rose to 4.57% from 4.55% late Tuesday.

Crude oil inventories gained, while gasoline stockpiles dropped.
Government data released Wednesday showed that crude oil inventories rose in the most recent week, adding to a gain posted in the previous period. Meanwhile, gasoline and distillate stockpiles fell once again. The Department of Energy''s Energy Information Administration said that crude oil inventories rose 4 million barrels in the week ended March 16. Specifically, the measure climbed to 329.3 million barrels from the previous week''s level of 325.3 million barrels. This added to a gain of 1.1 million barrels recording in the previous week. Oil inventories for the week were 3.7% below last year''s level. Meanwhile, gasoline inventories showed a week-over-week decline of 3.4 million barrels. This extended a recent streak of declines, including a slide of 2.5 million barrels in the previous week. The level of gasoline inventories was 3.4% below last year. Distillate fuel oil had an inventory decline during the week ended March 16 as well. Stockpiles of these products, which include heating oil, slipped by 1.7 million barrels. This added to recent declines, with a draw down of 2.8 million barrels taking place in the previous week.


10:30AM UK equity market was higher on Wednesday on BoE decision.
The UK market was higher on Wednesday. By late lunchtime, the benchmark index was 43.2 points higher at 6,263.5.

Advancers

Barclays kept gaining on hopes its move for ABN Amro of the Netherlands could leave it open to a bid. Barclays rose 1.9%. Hammerson gained 4.1% as takeover speculation continued to boost the property group.

Weir Group was up 3.9% as the engineering group announced a 40% rise in annual profits. British Airways rallied 3.4% on speculation about consolidation in the sector, as rumours continue that Iberia is being eyed by Lufthansa.

Decliners

Whitbread lost 2.4% on profit taking after the stock rallied on Tuesday in the wake of rumors of private equity bid interest in the owner of the David Lloyd chain of fitness centres and Costa Coffee shops. UK security and medical equipment maker Smiths Group fell 0.2 as it reported a 7% rise in first-half operating profit.

Inter Link Foods slumped 57% as the cake maker issued yet another profit warning. Engineer Smiths declined 0.7%, despite posting a 7% in underlying earning to 148 million pounds in its first half, though pre-tax profits fell slightly to 134 million pounds.


10:00AM Asian markets ended mostly higher Wednesday with HK leading gainers.
Asian markets ended mostly higher on Wednesday. The market in Japan was closed for public holiday. Hong Kong benchmark index Hang Seng Index rose 0.8% to 19,516.41. Property shares rose on expectations of strong 2006 financial results and hopes that the Federal Reserve will not raise interest rates. Hang Lung Properties rose 2.9%, Henderson Land gained 1.9% and Wharf Holdings advanced 1.1%.

The Weighted Price Index of the Taiwan Stock Exchange rose 0.3% to close at 7,757.03 and Singapore''s Straits Times Index advanced 1.25% to finish at 3,155.69. In Australia, the benchmark S&P/ASX 200 index fell 0.3% at 5,861.9 after hitting 5,906.7 in early trading.

South Korean shares ended flat as losses in LG.Philips LCD and LG Card countered strong gains by Hynix Semiconductor and shipbuilders. The Korea Composite Stock Price Index, or Kospi, closed down 0.1%, at 1,442.85.