1:00PM NY, 5:00 PM Frankfurt European markets closed slightly higher, boosted by automakers and chemicals.

European stock markets finished a volatile Tuesday session slightly higher, as lower oil prices boosted the shares of automakers and chemicals firms helping them to offset losses from retailers, insurers and banks, generated by persisting worries about the strength of the global economy. Across the region, France closed up 0.4%, followed by Germany with 0.2% advance and the U.K., up 0.1%.

In Frankfurt automakers were leading gainers, with Volkswagen moving up 2.1% after posting a 10% increase in July sales. Chemicals firms were also supported by retreating oil prices, sending BASF shares up 1.7%. In deal-related news, Bayer gained 3.8% on speculation the company will get a takeover bid from Swiss drug maker Novartis.

In Paris Arcelor Mittal gained 2.6% after Credit Suisse Group raised its recommendation on global steel stocks. The maker of steel tubes Vallourec rose 2.7%. Tire maker Michelin and airline France-KLM benefited from lower oil prices, moving up 3% and 3.7%, respectively.

In London oil-sensitive stocks also gained, with British Airways rising 1.5% and Ireland''s Ryanair Holdings adding 0.8%. Mining giant BHP Billiton climbed 2% as the price of nickel rallied. Xstrata, copper producer, climbed 1.2%. In the financial sector, Northern Rock declined 2.1% on negative comment from Bear Stearns. Shares of mortgage lender Northern Rock slipped 2% on worries about how it funds its mortgage lending.


11:30AM Market averages traded in a volatile fashion.

U.S. stock averages rebounded in a volatile trading after Senate Banking Committee Chairman Christopher Dodd said Fed Chairman Ben Bernanke is ready to use all tools at his disposal to help relieve the liquidity issues shaking Wall Street.

The measures taken by the Fed so far included injecting more liquidity into the banking industry and cutting the discount rate. Investors keep optimism that the Fed will make a step further and will cut the more important federal funds rate.

In corporate news, Countrywide Financial (CFC: chart) jumped 8% on speculations the U.S. biggest mortgage lender could be bought out by Berkshire Hathaway. TXU Corp. (TXU: chart) was also sent higher by speculations that Warren Buffett''s Berkshire Hathaway might acquire it.

The housing sector extended losses posted in the previous session.
Standard Pacific (SPF: chart) and Toll Brothers (TOL: chart) were downgraded by Bank of America, sending them down 7.8% and 3.6%, respectively.

Transportation stocks also moved notably down after two consecutive sessions of significant gains. Landstar Systems (LSTR: chart) led the sector down with a decline of 3%. At the same time, internet stocks gained, led by RealNetworks (RNWK: chart) after it announced that it will join forces with MTV by merging their online digital downloading services. The stock rose 5.9%.

In late morning trading, the Dow Jones industrial average rose 14.71, or 0.11% to 13,136.06, having moved in and out of positive territory. The Standard & Poor''s 500 index was up 5.23, or 0.36%, at 1,450.78, and the Nasdaq composite index rose 8.98, or 0.36%, to 2,517.57.


10:00 AM NY, 9:00PM Hong Kong – Stocks in Shanghai and Hong Kong lost its early momentum in trading at close. Earnings and rising metal prices dominated trading sentiment.

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.

The composite index in Manila jumped 9.8% or 283.18 points to close at 3,167.52. The market opened after a holiday and surged to its one-day best gain since 2001. The rate cut in the U.S. helped the market rebounds when other markets in the region rebounded in Monday trading. The broader All-share index jumped 8% to 2,016.16.

In Shanghai trading CSI 300 Index increased 1.8% to close at 4,972.70 on earnings news and pilot program to let local investors invest in Hong Kong.

Bank of China jumped 1.5% after the government agency allowed local residents to invest in Hong Kong listed companies in a pilot program.

China Southern Airlines reported first half profit of Rmb308 million compared to a loss of Rmb854 million loss. The airlines also said that it has signed a deal with Boeing to buy 55 Boeing 737 planes to be delivered in the years 2011 and 2013. The company carried 49.2 million passengers in 2006.

Chalco, the largest aluminum maker in China, jumped 9.4% to Rmb39.70 after it reported net income decline of 5.2%. The company also agreed to buy 49% stake in Yunnan Copper. The third largest copper company stock increased 5.3%. Other copper companies rallied on the news and rising copper prices in the international trading. Jiangxi Copper jumped 5% and Anhui Tongdu Copper increased 4%.

In Hong Kong trading Hang Seng index closed 0.6% or 133.72 higher to settle at 21,729.35 after gaining as much as 4.7% in the day. Of the 39 stock in the index, 23 gained and 14 declined. The daily turnover was recorded at HK$116.8 billion and GEM market was HK$724 million.

Hong Kong Exchanges & clearing Limited soared 6.2% to HK$123 on the news that the pilot program with a China controlled bank will allow its local residents to invest its foreign currency in Hong Kong stock market. China controls $2.2 trillion in foreign reserves and is planning to allow local companies and citizens to invest in international markets and assets. Credit Suisse revised its rating on the exchange operator to ''neutral'' on the news.

China Unicom and China Mobile jumped 2% and 1% respectively in the trading. Hong Kong traded shares of Chinese banks increased in trading. China Life jumped 3% and Industrial & Commercial Bank of China rose 2.4%.


09:45AM Wall Street lacked direction at opening amid further credit markets problems.

Wall Street lacked direction at opening hours, reflecting further credit problems and uncertainty about what the Fed Reserve''s next move might be to steady the markets and the economy.

Countrywide Financial (CFC: chart) rose 2.9% on speculations it might be a takeover target due to losses related to subprime mortgages. Capital One Financial (COF: chart) added 1.9% announced a decision to close its wholesale mortgage business and reduce 1,900 jobs.

Better-than-expected earnings reports from several retailers provided some boost to the market sentiment. Target Corp. (TGT: chart) added 0.6% after the discount giant reported 13% earnings increase and improved gross margins. BJ''s Wholesale Club (BJ: chart) said Q2 profit jumped 37% on 8% sales growth, beating expectations. The stock rose 5%.

However, shares of Staples (SPLS: chart) fell 1.8% after posting a lower-than-expected 11% profit rise. Shares of Saks (SKS: chart) dropped 2.5% after the retailer said it narrowed Q2 losses to 17 cents a share, from 15 cents a share a year ago.