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

Yields edged lower on 10-year U.S. bonds and closed at 5.03% and 30-year bond rose to close at 5.124%.

Crude oil advanced $1.11 to close at $70.68 per barrel, natural gas gained 12 cent to close at $6.77 per mBtu, and gasoline futures gained 2.75 cents to close at 229.42 cents per gallon.

Gold gained $0.50 to close at $650.90 per ounce, silver lost 3 cents to close at $12.47 per ounce, and copper futures gained $177 to close at $7,621 per metric ton.

In New York trading, stocks traded in a tight trading range with a negative bias ahead of July 4th holiday next week. Brokerage, homo builders and tech stocks showed weakness. Government reported several key economic indicators including measure of inflation and construction spending.

The Commerce Department reported May measure of core inflation, price index of personal consumption expenditure rose 1.9%, below Fed’s target rate of 2%. May month personal consumption rose at 0.5% and personal income increased at 0.4% from April. Construction spending jumped 0.9% driven by government and commercial construction. A day ago the Fed left the interest rates unchanged to 5.25% citing modest improvement in core inflation and steady economic growth in a unanimous decision. The Fed has left rate unchanged for nearly a year. Private survey of business activity in the Mid-west reported a decline in business activities.

Bear Stearns (BSC: chart) forced out its chief of asset management group after suffering heavy losses in its mortgage bond funds. The decline of 3% in the stocks led Goldman Sachs (GS: chart) down 1.3% and Lehman Brothers (LEH: chart) lower 2%.

Commerce Bancorp (CBH: chart) jumped 8.8% on the news that the company’s CEO Vernon W. Hill II has decided to step down after an agreement with regulators involving related party transaction between the bank and his family members.

Research In Motion (RIMM: chart) jumped 21% after reporting solid increase in revenue and earnings and deciding to split stock 3 to 1. The company also reported its first quarterly revenue of $1 billion.

United Auto Workers members at Delphi Corp ratified 40% pay cut for job security and bonus by 68% to 32% in favor the contract. The bankrupt company, with this agreement in place, plans to emerge from bankruptcy with only 25% production sites and cheaper wages. Workers will now receive base wage of $16.23 per hour and 21 of its 29 plants will be closed.

Latin American markets closed higher led by 0.8% gain in Chile followed by 0.45% rise in Brazil and 0.2% advance in Mexico. Argentina fell 1.2%. Rising copper prices lifted Chilean peso. Spread between Latin American bonds and U.S. treasuries widened to a three months high.

In Mexico City trading, stocks gained a fraction on firmness in early morning trading in New York. Large companies faced a wave of sell-off on the worries that a presidential plan is likely to boost taxes for Cemex and Groupo Televisa. Cemex has financed its international acquisition on lower taxes than its competitors in Mexico. Cemex paid 14% taxes and its competitor Lafarge and Holcim have paid taxes between 25% and 32% of its profit. Cemex fell 1% in New York trading. American Movil and Telmex fell 1% but Homex and Grupo Televisa jumped 1.5%.

In Sao Paulo trading, stocks gained a fraction on weak trading. Petrobras led the gainers with a rise of 1% but banks and local sugar and ethanol companies fell. CVRD advanced a 1.3%. TAM and GOL Airlines fell nearly 3% on oil crossing $70 per barrel.

1:00PM NY, 5:00 PM Frankfurt European markets gained ground on U.S. inflation data and bid tall.

European stock markets recovered from earlier weakness to close higher on Friday, helped by tame U.S. inflation data and bid talk. Shares of Capgemini advanced 1.1% in Paris, on speculation that India's Infosys Technologies Ltd. May launch a bid for the information-technology consulting firm. French industrial gasses group Air Liquide rose 3% on deal speculations, followed by its German peer Linde also gained ground, up 1.4%.

Among other notable gainers helping to boost sentiment, U.K. mortgage bank Northern Rock climbed 4.7%, continuing its recovery from the sharp losses posted earlier in the week. Shares of BT Group rose 1.1%. Of the companies moved by analyst comments, Swatch gained 2.4% after Deutsche Bank lifted its rating to buy from hold.

On the side of the losers, U.K. real-estate group Segro dropped 2% as HSBC downgraded the company to neutral from overweight. Share of U.K. coal-power firm Drax declined 2%. The German DAX 30 jumped 1.1% to stand at 8,007.32, the French CAC 40 rose 0.8% at 6,054.93, and the U.K.'s FTSE 100 added 0.6% at 6,607.90.


11:30AM Market averages traded higher, supported by energy stocks.