4:30PM New York, 10:30PM Frankfurt, 2:00 AM Mumbai

Market averages in New York traded in volatile fashion as investors worried of the next fallout from the credit malaise. Much publicized meeting between the Senate Banking Committee Chairman, the Fed Chairman, and Treasury Secretary did not reveal any new information. Countrywide soared on buyout speculation. European stocks edged higher. Oil fell. Asian stocks reacted to local news and earnings report.

Dow Jones Industrial Average gained 0.12% or 42.27 to 13,121.35, Nasdaq lost 0.32% or 3.56 to 2,508.07, and S & P 500 lost 0.32% or 0.39 to 1,445.55.

FTSE 100 Index in the U.K. closed down 7.40 or 0.12% to 6,086.10, in Tokyo Nikkei 225 closed at 15,901.34, up 1.07% or 168.86, and in Brazil, iBovespa Index traded up 647.60 to 49,206.36.

Yields edged lower on 10-year U.S. bonds and closed at 4.59% and 30-year bond rose to close at 4.95%.The yield spread between the long and short narrowed as investors pile on to the treasuries.

Crude oil decreased $1.65 to close at $69.47 per barrel, natural gas closed down 22 cent to $5.82 per mBtu, and gasoline futures decreased 7.5 cents to close at 186.37 cents per gallon.

Gold dropped 30 cents in New York trading at $666.30 per ounce, silver lost 23 cents to close at $11.67 per ounce, and copper futures gained $4.00 to close at $7,072.00 per metric ton.

In New York, traders looked for direction and waited to hear comments after the close-door meeting between the Senate Banking Committee Chairman, Treasury Secretary, and the Fed Chairman. The comments from Mr. Dodd, Chairman of the Banking Committee did not shed any new light on the current credit market turmoil. Jeffrey Lacker, Richmond District Federal Reserve President, made a hawkish statement in the afternoon and singled out inflation as the Fed’s main target. The statement dampened the mood on Wall Street as investors were looking a signal on rate cut in the next meeting.

After a day of mopping up liquidity from the market, the Fed added $3.75 billion of liquidity in the market. The total funds added to the system now top $100 billion, higher than added during the September 11 crisis. Central Banks around the world added liquidity. In Japan, BOJ added nearly $7 billion and Australia pumped less than $300 million. New York Fed lowered fee it charges to lend securities to 0.5% from 1.0% today. Despite the higher liquidity the credit markets remain nervous and spread between the short and long term bonds remain narrow. The commercial paper market remains closed to borrowers other than prime borrowers and investors remain jittery in Asia, Europe and in New York.

American Eagle lowered its profit outlook and Staples lowered its sales outlook for the year. Saks reported earnings of 17 cents per share on revenue rise of 15% and revised upwards its revenue outlook. Target reported same store sales increase of 4.9% and profit increase of 13% in the second quarter on 9.5% rise in revenue to $14.6 billion.

Of the 30 stocks in Dow Jones Industrial Average 17 closed lower and 13 advanced. Of the 30 stocks 7 declined more than 1% and 5 stocks gained more than 1%. ExxonMobil led the index stocks with a fall of 2.2% followed by 2.1% decline in United Technology, and 1.5% decrease in Hewlett Packard. Verizon Communication led the gainers with a rise of 1.5% followed by 1.4% increase in Home Depot and 1.2% in Disney.

Of the stocks in S&P 500, 221 stocks closed lower and 275 gained, 4 stock closed unchanged. Countrywide Financial led the index stocks with a gain of 8.8% followed by 6.1% rise in E*Trade, 5.8% in LSI Corp, and 5% in Nvidia. Starwood Hotels and CB Richard Ellis gained 4.5%. UST Inc led the decliners with a fall of 6.6% followed by decline of 3.8% in Ambac, 3.5% in Murphy Oil, and 3.4% in Rowan Companies. Monster Worldwide, Jones Apparel, and Hess Corp dropped little over 3%.

Asian markets diverged as regional news and events dominated trading. Thailand led the region with a loss of 3.5% followed by declines of 3.1% in India, 2.8% in Singapore, 2.4% in Indonesia, and 2% in Philippines. Japan led the gainers in the region with a rise of 1.1% followed by 0.9% close after volatile trading in Australia, and 0.6% increase in Hong Kong.

In Latin Markets trading Chile led the region with a gain of 2.5% followed by Argentina with a rise of 1.54%, 1.2% in Brazil, and 0.21% in Mexico. Of the 60 stocks in the Brazil iBovespa index 49 closed higher and 11 closed higher. Cosan led the gainers with a rise of 5% in bovespa index followed by Cyrela Commercial with a gain of 5.1% and 4.3% increase in TIM and Tam.


3:00PM New York, 8:00PM London - UK shares rose marginally in volatile trading, dragged by renewed U.S. credit marker fears. Bank and metal stocks trade mixed and supermarket shares fell. Bank of England extends $628 million emergency funding to unnamed bank. Virgin Media CEO resigns.

UK investors traded cautiously amid renewed U.S. subprime mortgage market problems. London rose 0.12% after a shaky morning trade, tracking higher U.S. shares, as Federal Reserve officials committed to resolving the credit market woes. Of the 102 stocks in the FTST 100 index, 51 fell, 49 gained and 2 were unchanged. Bottom 20 dragged by more than 1%, as gains were restricted to a maximum 2.5%.

In London trading FTSE 100 added 0.12% or 7.4 added 0.12% to 6,086.10 in volatile trading, as risk averse investors kept off equities. The Bank of England extended an emergency $628 million loan to an unnamed bank, at a punitive rate of 6.75%, 1% higher than current lending rate. The European Union is considering lifting a ban on UK beef exports, as the foot and mouth disease appears to be in control.

Of the index stocks in FTSE 100, BHP Billiton led with 2.04% followed by International Power plc rising 1.6%. British Airways added 1.52%, BT Group plc surged 1.5% and British Land Co plc pushing higher 1.42%. Financial shares, Standard Chartered and Schroders plc rose 1.31% each. Retail shares fell after the Competition Commission announced yesterday that it was probing supermarkets over alleged abuse of suppliers. Barratt Dev led with a decline of 3.25% followed by Experian Group sliding 2.5% and Punch Taverns lost 2.4%. Intercontinental dragged 2.33% while Drax Group finished lower at 2.29%. Retailers, Marks & Spencer, Tesco and Kingfisher fell 2.25%, 1.12% and 1.15 in that order. Northern Rock, Man Group and Barclays plc lost over 1% each. Metal shares rose helped by firming world commodity prices.

Virgin Media announced Tuesday CEO Steve Burch stepped effective today to pursue personal interests. Chief operating officer Neil Berkett will step in his shoes until a replacement has been found, said the company.