4:00PM NY, 10:00 PM Frankfurt, 1:30AM Mumbai – Global Markets

Yields edged lower on 10-year U.S. bonds and closed at 5.204% and 30-year bond rose to close at 5.278%.

Crude oil gained 91 cents to close at $66.26 per barrel, natural gas down 7 cent to close at $7.61 per mBtu, and gasoline futures rose 2.03 cents to close at 215.53 cents per gallon.

Gold fell 40 cents to close at $652.70 per ounce, silver lost 3 cents to close at $13.06 per ounce, and copper futures declined $187 to close at $7,529 per metric ton.


Latin American Markets closed higher tracking a rise in New York trading. Brazil with a rise of 2.25% led the region, followed by 1% gain in Argentina, 0.6% advance in Mexico and 0.7% increase in Chile.

In Sao Paulo trading steel, telecom and retail stocks surged following GDP report. The economy expanded at a pace of 4.3% in the first quarter and 0.8% higher from the fourth quarter of last year. The Finance Minister reiterated that the economy will expand at 4.5% for the year on higher level of activity in the second half of the year. Real, Brazilian currency rose 1.2% on the news and several analysts lowered their target interest rate for the year. Gerdau, steel maker, jumped 2.4% on an upgrade from UBS and revised price target to R 60 from R 50 and lifted shares of Usinimas and CSN by 1%.

In Mexico City trading American Movil, Cemex, Wal Mart de Mexico and Grupo Televisa traded fractionally up.

European Market closed higher after a sharp sell off on the worries of rising rates. Mining companies led the charge across the region. European stocks gained as bond yields declined from a five-year high but stayed near the elevated levels. Yield on 10-year bond fell to 5.22% from 5.32% a day ago.

With a rise of 0.6%, UK, France and Italy led the region followed by 0.4% gain in the Netherlands and Spain and 0.3% advance in Norway. Switzerland dropped 0.4%.

In London trading mining companies led the rise. Anotfagsta, owner of three mines in Chile, said that the company expects the year to be ‘good’ and market environment are conducive for better performance. The statement lifted the company stock 5% and helped other mining companies. Rio Tinto jumped 4.5%, Xstrata and Lonmin gained 4.8% and Vedanta Resources advanced 3.5%. Alliance & Leicester rose 1.3% on the bank statement that the earnings may grow nearly 4%. J. Sainsbury advanced 1.5% and Royal & Sun Alliance 3.5% on takeover rumors.

In trading in Paris, Societe Generale, Total, Renault and France Telecom dominated most active stocks list. Total gained 1.1% reflecting a rise in energy stocks after weekly inventory report in the U.S. lifted crude oil price. Societe Generale advanced 1.1% as bond yields declined and talk of takeover rumors persisted. Renault said that the monthly auto sales in May declined 4.5% to 214,350. The stock closed unchanged. France Telecom rose 0.8% on no new.

In Frankfurt trading Volkswagen jumped 1.2% on the company reporting lower losses in the U.S. The company said that its sales in the U.S. have declined 4.4% in the first four months of the year and the company expects to break-even in the U.S. no later than 2009. Allianz and Hypo Real estate fell nearly 1% on the worries that the rising rates will hurt the profits. Heidelberger Druckmaschinen gained 2.6% on the report that the company expects moderate rise in sales and net profit to be at 5% of sales. Two separate broker recommendation helped Bayer and Infineon jump 1.5%.

Asian Markets closed lower as the sell-off in America and Europe reached the region. Thailand led the region in decline with a loss of 2.2%, followed by a loss of 1% in Australia, India and Indonesia, 0.5% decrease in South Korea and 0.3% loss in Taiwan, Singapore and Hong Kong. Japan closed lower 0.2%.

Japanese and Hong Kong real estate and banking stocks closed lower on worries of rising interest rate in the region. Mitsubishi Estate fell 1.7% and in Hong Kong Wharf Holdings dropped 1.4%, Sino Land lost 1% and Swire Pacific dropped 0.4%. A drop in yen spurted stocks of exporting companies. Sony advanced 1.2%, Canon gained 0.6%, and Honda rose 0.5%. Daido Steel rose 11% on the Nikkei newspaper report that select categories of automotive steel prices are likely to increase 12%.

Trading in India reflected global hike in interest rates. State Bank of India dropped 3% and ICICI Bank lost 1% on the news that it is preparing to file offering document to raise $2.1 billion.

In South Korea engineering and shipping stocks led the market decline. GS Engineering lost 4.2%, Daewoo Shipbuilding dropped 3% and Samsung Electronics declined 1%. Two brokerage companies involved in possible merger closed sharply higher bucking the trend. Seoul Securities gained 12% and NH Investment & Securities formerly known as Sejong Securities gained 9.5%.

In Shanghai trading stocks continued to gain ground for the seventh trading session in a row. National Statistics Bureau reported that May retail sales surged 15.9% from a year ago tracking a rise of 15.5% in April. For the first five months retail sales gained 15.2% on 42% rise in furniture sales, 34% gain in automobile sales and 37% jump in jewelry sales.

Real estate companies led the rising markets on the hopes that liquidity and corporate profits will drive the construction industry. China Merchants Property advanced 8%, China Vanke rose 6% and China Merchants Bank increased 5%.

1:00PM NY, 5:00 PM Frankfurt European markets gained ground, boosted by strong mining stocks.