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. Countrywide to begin reduce staff. Capitol One to close mortgage division. European stocks closed higher. Oil fell. Asian stocks rebound.

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 14.50 or 0.24% to 6,078.70, in Tokyo Nikkei 225 closed at 15,732.48, up 3.00% or 458.80, 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 4.65% and 30-year bond rose to close at 4.98%.

Crude oil decreased 86 cents to close at $71.12 per barrel, natural gas closed down 97 cent to $6.04 per mBtu, and gasoline futures decreased 10.5 cents to close at 193.65 cents per gallon.

Gold dropped 30 cents in New York trading at $666.50 per ounce, silver lost 6.5 cents to close at $11.73 per ounce, and copper futures gained $268.00 to close at $7,068.00 per metric ton.

In New York trading stocks bounced around with no clear direction in trading. Financials and bank stocks led the decliners mining and railroad companies bounced back.

Bear Stearns fell as low as $112 before rebounding and closing at $116.30, down 1%. Lehman Brothers declined 2% to close at $57.07. Merrill Lynch dropped 1.5% to close at $74.90. Citigroup declined 1% to close at $48.39. The market recovered in the last afternoon trading and stocks in the banking, mortgage lending, and housing market were very volatile. Countrywide Financial closed at $19.81, down $1.62 after the news report that it plans layoff in its mortgage origination business. The stocks also faced a headwind after banking industry advisor lowered its rating on the company and said that banking unit of the company may see some deposit losses.

Capital One Financial said that it plans to close its recently purchased mortgage division GreenPoint. The company plans to take a charge of $860 million or $2.15 per share and lowered its earnings per share for the year to $5. The company paid $13.2 billion for GreenPoint parent, North Fork Bancorp a year ago.

Lennar dropped 2% and Toll Brothers fell 3%. Beazer Homes, Pulte Homes, and D R Horton were volatile. Moody’s Corp, mortgage and other bonds rating agency fell 8% to $45.89. The McGraw Hill Companies dropped to one-year low n the worries that its bond rating unit S&P earnings may suffer in the current credit malaise.

KKR Financial agreed to sell 16 million shares to seven institutional shareholders for $230 million.

Of the 30 stocks in Dow Jones Industrial Average 11 closed lower and 19 advanced. Of the 30 stocks 4 declined more than 1% and 9 stocks gained more than 1%. IBM led the index stocks with a loss of 1.5% followed by 1.2% decline in Hewlett Packard and J P Morgan Chase. Alcoa led the gainers with a rise of 3.1% followed by increases in Honeywell with 2.5%, and 1.9% in Caterpillar.

Of the stocks in S&P 500, 241 stocks closed lower and 252 gained, 7 stock closed unchanged. Technology, mortgage lenders, industrials, steel, and energy stocks dominated the losers list. Moody’s Corp led the index stocks with a loss of 8.2% followed by declines of 7.5% in Countrywide, 4.5% in National City Bank, and 4% in Federated and Northern Trust. Lowe’s led the index stocks with a gain of 6% followed by rise of 5.5% in Union Pacific, 5.3% in Tribune, 4.8% in MEMC, and 4.2% in Terex. CSX, Hasbro, and American Standard jumped 3.8%.

Asian Markets hit new 3-year highs tracking gains in US and Europe after Federal Reserve lowered rates. Indonesia led the region rising 6.6% followed by Singapore up 6.12%. Hong Kong surged 5.93%, South Korea up 5.7% while China added over 5%. Australia rose 4.6%. Australian shares lagged some of the other big moves in the region.

In Latin Markets trading Argentina led the region with a sharp gain of 5.2% followed by Brazil with a rise of 1.33%, 0.77% in Chile, and 0.2% decrease in Mexico. Of the 60 stocks in the Brazil index 22 closed lower and 37 closed higher. CESP, SABESP and Unibanco jumped near 5%. TAM and Gol led the decliners with a loss of 5% and 4%. Petrobras fell 1% and recently listed ADR in New York of Cosan fell 0.9%.

2:30PM New York, 7:30PM London - London shares rise marginally after volatile trading. Competition commission probes Tesco and Asda over alleged misuse of suppliers. Nasdaq to sell 31% London Stock Exchange stake. Public sector finance current budget surplus rises to 8.6 billion pounds.

London shares traded volatile, in contrast to higher Asian shares, but tracked lower US shares on renewed credit market worries. Mining stocks climbed higher on firming global prices, as bank shares fall deeper. London finished up 0.24%, marginally down from 3.5% gain on Friday. Of the 102 stocks in the index, 57 gained, 43 fell while 2 remained unchanged. Of the index stocks 29 shares rose between 1% and 5% and 6 stocks jumped above 3%. Fifteen stocks lost more than 1%.

In London trading FTSE 100 pushed up 0.24% top 6,078.70 helped by gains in mining stocks. Bank shares fell, tracking losses in the US, as credit crunch worries resurfaced. Stocks rallied on Friday after U.S. Federal Reserve slashed rates.