4:30PM NY, 10:30 PM Frankfurt, 2:00AM Mumbai – Global Markets

Yields fell on 10-year U.S. bonds and closed at 4.93% and 30-year bond closed at 5.03%.

Crude oil rose $1.13 to close at $66.21 per barrel, natural gas gained 33 cent to close at $8.21 per mBtu, and gasoline futures rose 4.13 cents to close at 224.45 cents per gallon.

Gold dropped 60 cents to close at $676.30 per ounce, silver gained 0.5 cents to close at $13.745 per ounce, and copper futures advanced $75 to close at $7,527 per metric ton.

Asian Markets closed higher across the region but sharp corrections in Shanghai. Shanghai dropped 8.3% and totaling 15% in the last four trading days, as slow panic among novice investor class has begun to set in. The Shanghai Composite Index is still up 37% for the year and new securities account are added at a brisk rate of between 300,000 and 400,000 a day. Philippines and Thailand with a gain of more than 2% led the region followed by 1.3% rise in Indonesia and South Korea. India fell 0.5% on the worries that inflation may pick up in coming months. In Tokyo, Japanese Ministry of Finance said that capital spending rose 13.6% in the first quarter of this year, higher than estimated.

European Markets closed lower across the region dragged by financial services and utilities stocks. A decline of 0.7% in Italy and France led the region, followed by 0.5% loss in Switzerland and Spain. AXA lost nearly 1% on the deal to sell its Dutch operation for $2.4 billion. Zurich Financial gained 1.2% on the news that it has agreed to divest its UK annuity business to Swiss Re. European steel companies rose in New York and local trading. Arcelor Mittal and Thyssen Krupp led the sector. Thyssen rose 3% on an upgrade from UBS.

Latin American Markets closed higher led by 0.4% rise in Chile and Mexico. Brazil dropped 0.4% and Argentina lost 0.5%. Brazilian Prime Minister Lula is visiting India and Petrobras signed oil exploration deal with Indian government. Brazilian stock market crossed $1 trillion mark following China and India this year. Four-year rally has doubled corporate profits and bolstered the currency Real. Brazilian stocks are trading at cheapest earnings multiple of other fast growing large emerging economies of China, Russia, India and Mexico.


1:00PM NY, 5:00 PM Frankfurt European markets ended lower, dragged by utilities and financial stocks.

European stock markets closed lower Monday, pressured by weakness in the financial-services sector and utility companies such as E.On. Another plunge of the Chinese stock prices also weighed on sentiment. China's Shanghai Composite dropped 8.3% on profit-taking.

Utilities were among the most notable decliners, with shares of E.On falling 1.8%, RWE losing 0.6%, and Gaz de France falling 1.4%. On deal news front, U.K. real-estate investment company Segro lost 1.1% after it said it agreed to sell Slough Estates USA to Health Care Property Investors. French insurance group AXA fell 0.8% after the company said it's planning to sell its operations in Netherlands for 1.75 billion euros to SNS Reaal, pushing its shares up 4.4%. Zurich Financial Services added 1.4% after the group agreed to transfer part of its U.K. annuity business to Swiss Re.

In the pharmaceutical sector, drug maker Roche fell 1.3% as the majority owner of Genentech revealed data that showed its Avastin drug didn't provide a survival benefit in colorectal cancer when combined with Folfox. The French CAC-40 dropped 0.7% to close at 6,125.81, while the U.K.'s FTSE 100 slipped 0.2% to 6,664.10 and the German DAX Xetra ended down 0.1% at 7,976.79.


11:30AM U.S. market averages turned in a lackluster performance.

The U.S. market averages turned in a lackluster performance in late morning trading after posting a notable weakness at opening. The Dow traded lower, dragged by Citigroup (C: chart), Merck (MRK: chart), Coca-Cola (KO: chart), and Procter & Gamble (PG: chart), each falling about 1%. However, Wal-Mart (WMT: chart) and General Electric (GE: chart) limited the downward trend, rising 3% and 1.3%, respectively.

Airline stocks fell after Continental Airlines (CAL: chart) reported lower revenues per passenger in May. Continental shares dropped 3.6%. UAL Corp. (UAUA: chart) was the most notable decliner on the Nasdaq, falling 5.7%. The networking sector posted gains, with Avaya (AV: chart) rising 4% amid reports that it is close to a deal to be acquired by two private equity firms for more than $8 billion. Some computer hardware stocks also showed strong upwards moves. Palm (PALM: chart) jumped 8% after agreeing to sell 25% of the firm to a private-equity firm for $325 million

In other merger-and-acquisition news, Axa (AXA: chart) agreed to sell a Dutch unit for $2.35 billion to SNS Reaal of Holland. Accredited Home Lenders Holding (LEND: chart) surged 11% after the subprime mortgage firm agreed to be acquired by Lone Star Fund V L.P. for $15.10 a share in an all-cash deal.

Investors paid little attention to news that factory orders rose 0.3% in April, below the 0.8% expected by economists. The Dow Jones industrial average was down 26.33 points, or 0.19%, at 13,641.78. The Standard & Poor's 500 Index was down 1.40 points, or 0.09%, at 1,534.94. The Nasdaq Composite Index was down 5.54 points, or 0.21%, at 2,608.38. The benchmark 10-year note was yielding 4.94% on Monday, a slight dip from 4.96% on Friday.