Mining shares rose reasonably, as global metal prices trend higher. Of the FTSE 100 index stocks, British Energy led the gainers with a rise of 4.6% followed by 4.2% rise in BHP Billiton plc. Kazakhymys plc rose 4%, BAE Systems up 3.48% and Rio Tinto plc added 3.22%. Bank shares skid, as investor worries that the US rate cut was not enough to stop growing subprime market losses. Segro plc plunged 10.14% followed by Brit Land Co plc easing 3.5% and Reed Elsevier lost 2.61%. Standard Chartered dropped 2.50%, Old Mutual plc fell 2.16% and Barclays shed 0.78%. HSBC Holdings Ltd lost 0.89% despite news the bank was in negotiations with Lone Star Funds to acquire a 51% stake in Korea Exchange Bank.

Nasdaq has announced plans of selling its 31% stake in the London Stock Exchange, six months after its take-over bid hit a brickwall. The stake is valued at over 797 million pounds. Nasdaq built the stake up over a period of time, seeking to swallow LSE but shareholders rejected the proposal. The stock market operator will now shift attention to buy Nordic exchange operator, OMX in competition with Bourse Dubai. LSE shares were up 2.4% in early afternoon trade.

The Competition Commission announced Sunday it was investigating supermarkets Tesco and Asda over alleged misuse of suppliers. The Commission said it wanted to find out whether the two supermarket chains were putting undue influence on suppliers, particularly in the wake of stronger sales growth and accelerated expansion. A spokesperson for Asda is quoted as saying some 11 million emails would be probed. Tesco closed down 0.7%.


1:00PM NY, 5:00 PM Frankfurt European markets closed higher, boosted by mining stocks.

European stock markets finished in the positive territory Monday, lifted by retreating concerns about the financial system and global economic growth. Market sentiment was also supported by solid gains in the shares of mining and financial companies. France led regional gainers with an advance of 0.7%, followed by Germany, up 0.4% and the U.K., rising 0.2%.

In Frankfurt Hypo Real Estate Holding and Deutsche Postbank led banking shares up after Lehman Bros raised its recommendation on the industry. Hypo Real Estate Holding rose 2.2%, while Postbank gained 1.6%. Deutsche Boerse, operator of the Frankfurt Exchange, climbed 3.5%. Elsewhere, Deutsche Telekom added 2.1% after the EU regulators approved the company''s proposed acquisition of France Telecom SA''s Dutch wireless unit.

In Paris steel giant ArcelorMittal was a notable advancer, moving up 3.4%. Lower oil prices help transport-related stocks, with shares of tire maker Michelin up 2.4%. Shares of Alstom gained ground, rising 3.5% after the engineering group was upgraded to buy from hold at Dexia.

In London mining companies posted significant gains. Rio Tinto climbed 3.2%, BHP Billiton jumped 4.2% and Anglo American advanced 3%. In the financial secyor, HSBC Holdings fell 0.9% after it said that it is in talks to buy a majority stake in Korea Exchange Bank from Lone Star Funds. Shares of rival Standard Chartered declined 2.5%. The London Stock Exchange climbed 2.4% amid renewed bid speculation after Nasdaq Stock Market said it would put its entire 31% LSE stake for sale.


12:00AM New York, 9:30PM Mumbai – Sensex in Mumbai trading advances on rising telecom, fertilizers, and banking stocks.

The Sensex in Mumbai trading gained 286.03 points or 2.02% to 14,427.55 on Asia-wide recovery. The index opened up 3% and steadily lost ground near the close. The CNX Nifty Index increased 101 points or 2.5% to close at 4,209.05. Rupee fell to 41.06 to a dollar from 41.33.

Daily turnover on the Bombay Stock Exchange declined to 3,819 crore rupees from 5,320 crore rupees on Friday. Of the stocks traded on the exchange 1,901 gained, 828 declined, and 51 were unchanged. Of the 30 stocks in the index 25 gained and the rest declined.

Banks led the rallying stocks after ICICI reported that it has received approval from an agency approving investment from foreign investors to sell 24% stake in its subsidiary ICICI Financial Services. The news lifted the stock 5% to 867 rupees and dragged other stocks in the sector higher. Kotak Mahindra gained 7.7% to 684, Bank of India increased 2.3% to 235 rupees, and HDFC Bank surged 5.6% to 1,130 rupees.

Software exporters fell on the rising rupee in international trading on the worries that the U.S. economic slowdown may hurt revenue of exporters. Satyam Computer led the index and sector with a loss of 1.8% followed by Infosys with a loss of 1.4% to 1,830 rupees, Wipro declined 0.7% to 472 rupees, and TCS edged 0.1% lower to 1,055 rupees. WNS lost nearly 30% in New York trading on the worries that it may have lost clients in the recent credit market turmoil in the U.S.

Metal stocks rallied on the rising mining stocks in the region. Tata Steel gained 4.7% to 570 rupees, Sterlite Industries soared 9.3% to 564 rupees, and Hindustan Zinc increased 1.6% to 681 rupees.

Fertilizer stocks rallied on the government decision to issue bonds to cover deficit from higher raw materials cost to the government controlled companies. The 7,500 crore bonds is the first ever issue of this type. Rashtriya Chemicals soared 19% to 53 rupees. National Fertilizers jumped 13% to 36 rupees, and Gujarat Narmada Valley Fertilisers increased 13%.

Reliance Communications gained 3% to 508 rupees on the news that the company is in talks to acquire controlling stake in $7 billion valued Aircel. Malaysia based Maxis Group owns the Aircel in partnership with Apollo Hospitals.


11:30AM Market averages turned mixed, as Fed’s next move is expected. Thornburg Mortgage weighed.